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SKP Resources to buy Tecnic for RM200mil

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SKP Resources to buy Tecnic for RM200mil Empty SKP Resources to buy Tecnic for RM200mil

Post by Cals Fri 03 Oct 2014, 02:16

SKP Resources to buy Tecnic for RM200mil
Business & Markets 2014
Written by Levina Lim of theedgemalaysia.com   
Thursday, 02 October 2014 20:04

KUALA LUMPUR (Oct 2): Plastic products maker SKP Resources Bhd will be buying the entire business of smaller rival Tecnic Group Bhd for RM200 million, confirming a report by The Edge Financial Daily on Sept 30.
The proposed acquisition will be satisfied by RM100 million in cash, and the issuance of 172.4 million new shares in SKP at 58 sen per share.

Upon receiving the cash, Tecnic will distribute 95% of the proceeds, or RM95 million (translated into RM2.35 per share), to its entitled shareholders. Tecnic will also distribute the 172.4 million SKP Shares, on the basis of 4.27 SKP Shares for every one Tecnic Share held by the entitled shareholders of Tecnic.

In a filing with Bursa Malaysia today, SKP said it has entered into a conditional share sale and purchase agreement with Tecnic, for the entire issued share capital of three of the latter’s wholly-owned subsidiaries — Plastictecnic (M) Sdn Bhd (PSB), Sun Tong Seng Mould-Tech Sdn Bhd (STSM) and Bangi Plastics Sdn Bhd (BPSB).

Following the completion of the acquisition, Tecnic will no longer have any business or operation, and become a “cash company” pursuant to Practice Note 16.

“The proposed acquisitions will allow SKP to leverage on the additional production capacity of the target companies, allowing SKP Group to re-jig its product mix and better tailor its services to suit the demands of customers,” said SKP.
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