|Description||PESTECH INTERNATIONAL BERHAD (“PESTECH” OR “THE COMPANY”) – AGREEMENTS FOR THE SALE AND PURCHASE OF 100% OF THE ISSUED SHARE CAPITAL OF COLAS RAIL SYSTEM ENGINEERING SDN. BHD. ENTERED BETWEEN PESTECH TECHNOLOGY SDN. BHD. AND THE FOLLOWING PARTIES:-
– COLAS RAIL ASIA SDN. BHD. AND COLAS RAIL
– VITAL BID SDN. BHD.
|Pursuant to Paragraph 9.19(23) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of PESTECH wishes to announce that its wholly-owned subsidiary, PESTECH Technology Sdn. Bhd. (“PTECH”) had on 24 October 2017 and 25 October 2017, entered into Agreements for the sale and purchase of 100% of the issued share capital of Colas Rail System Engineering Sdn. Bhd. (“CRSE”) with the following parties, respectively at a total purchase consideration of RM10,382,500 (Ringgit Malaysia: Ten Million Three Hundred and Eighty Two Thousand and Five Hundred only):-
1 Colas Rail Asia Sdn. Bhd. and Colas Rail; and
2 Vital Bid Sdn. Bhd.
(hereinafter referred to as “Acquisition”)
The Acquisition of 100% of CRSE is now effective with the execution of both Agreements with the parties above, upon such terms and conditions stated in the Agreements.
Following the Acquisition, CRSE shall become a wholly-owned subsidiary of PTECH, and an indirect wholly-owned subsidiary of PESTECH.
Information on PTECH
PTECH was incorporated under the Companies Act, 1965 on 30 December 2013 with an issued share capital of RM1,000,000.
The principal activity of PTECH is involved in the provision of design, engineering, supply and commissioning of balance of plant systems for power plants and rail electrification projects.
Information on CRSE
CRSE was incorporated under the Companies Act, 1965 on 19 August 2013 with an issued share capital of RM750,000/-.
The principal activity of CRSE is involved in the provision of project management, engineering design, procurement, construction and related support services in relation to railway electrical and mechanical projects.
Rationale of the Acquisition
The Acquisition is expected to accelerate the growth of PTECH in the power generation and rail electrification business and enhance PESTECH Group’s future earnings potential.
The Acquisition is not expected to have any effect on the issued and paid-up capital of PESTECH.
The Acquisition is envisaged to contribute positively towards the revenue, earnings and net assets per share of PESTECH in the future.
Directors’ and Substantial Shareholders’ Interests
None of the directors or substantial shareholders of PESTECH or persons connected with them has any interest, whether direct or indirect in the Acquisition.
Statement by Directors
The Board of Directors is of the opinion that the Acquisition is in the best interest of the PESTECH.
This announcement is dated 30 October 2017.
|Company Name||PESTECH INTERNATIONAL BERHAD|
|Date Announced||30 Oct 2017|
|Category||General Announcement for PLC|