Ge Shen has announced that it had acquired a 60% equity interest in Amity Research and Development and Amity Technical Services and Management for a purchase consideration of RM13.5 million to be fully satisfied in cash.
The parties expect to execute the SSA within 60 days from the date of the TS subject to satisfactory due diligence findings on ARD and ATSCM by the Company. Upon completion of the Proposed Acquisitions, Target Companies become 60.0% owned subsidiaries of the Company
ARD is a private limited company principally involved in providing project engineering and consultancy services relating to the electrical and electronics E&E”) industry.
Ge-Shen noted the proposed acquisitions will enable the group to further expand its operation from manufacturing of plastic moulded products and components and manufacturing of fabricated metal products, moulds, tools and die to manufacture a wide variety of product range including PCBA, product box built, cable assembly and electronic parts as well as designing electrical goods and components parts and providing consultancy services in relation to E&E.
In addition, it believes that the acquisitions will allow it to increase its offerings, increase its revenue and earnings and grow additional recurring income stream to enhance Ge-Shen’s profitability and shareholders value.
