Ge-Shen Seeks To Acquire 40% Stake In Electronic Manufacturer For RM48 Million

Ge-Shen is seeking to acquire a 40% stake in Local Assembly Sdn Bhd, an electronic manufacturing service provider, for RM48 million, indicating the Group’s expansion into the EMS market.

The group said it had proposed to enter into a share sale agreement (SSA) with the 3 co-founders of Local Assembly Sdn Bhd to acquire 400,000 ordinary shares As part of the terms stated in SSA, Ge-Shen is guaranteed a minimum Profit After Tax (PAT) of RM24 million from LA for FYE24 and FYE25

The purchase consideration is in line with the company’s objective of being a globally recognised engineering and manufacturing solutions provider. Ge=Shen said of the RM48 mil purchase price, 30% (RM14.4 mil) will be funded via bank borrowings and the remaining 70% (RM33.6 mil) will be funded via the proceeds to be raised from the proposed private placement stated in the same filing.

The anticipated completion of the proposed acquisition is slated for the second half of 2024.

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