APB Resources has proposed to acquire 70,000,000 ordinary shares in Globetronics Technology Bhd from General
Produce Agency Sdn. Berhad and Ng Kweng Chong Holdings Sendirian Berhad representing approximately 10.41% of the equity interest for a total cash consideration of RM140 million.
The acquisition represents a premium at RM2.00 from the company’s weighted average weekly price of RM1.76 which lands it a 13.6% on the upside.
The proposal comes amid APB’s business diversification plan to include investment in manufacturing and distribution of semiconductors and semiconductor components business.
APD said the outlook of the electronics manufacturing services (“EMS”) market in Malaysia and the global semiconductor industry prepared by Protégé Associate Sdn Bhd, as set out in
The Proposed Acquisition will result in a diversion of more than 25% of the net asset of APB and its subsidiaries (“APB Group”) into investment in Globetronics Group, which is mainly involved in the manufacturing and distribution of semiconductors and semiconductor components business. In this regard, APB will be seeking the approval of its shareholders at an extraordinary general meeting (“EGM”) to be convened for the Proposed Diversification
For the past 10 years, Globetronics Group recorded profit after taxation, and had been paying dividends steadily. We set out below Globetronics’ historical dividend payments and dividend yield as extracted from Globetronics’ annual reports
