SAM Engineering & Equipment had entered into a conditional share sale agreement with Singapore Aerospace Manufacturing Pte Ltd, to acquire the entire equity interest in Aviatron (M) Sdn Bhd.
The group said key strategic benefits for this transaction include the enhancement of its aerospace business with increased revenue contribution of approximately RM430.72 million on a pro forma basis. It will also increase synergies through the sharing of manufacturing facilities, technical expertise and resources for current and future projects; and increased capability for the manufacture of other aircraft structures.
In conjunction with the Proposed Acquisition, SAM Engineering has proposed to undertake a renounceable rights issue of ordinary shares at an issue price to be determined and announced by the board at a later date on the basis of one Rights Share for every four existing SAMEE Shares held on an entitlement date to be determined and announced later.
The purpose of the said Proposed Rights Issue includes financing the Proposed Acquisition and repaying bank borrowings of SAMEE and its subsidiaries. SAMPL has provided its written undertaking to subscribe for its entitlement under the Proposed Rights Issue and any remaining excess Rights Shares not taken up by the other entitled shareholders of the Company and/or their renouncees.
