KUALA LUMPUR (Jan 24): Luster Industries Bhd, which is principally involved in the manufacturing of plastic parts and components and machining of metal parts, is acquiring 100 million shares representing an 8.169% stake in ACE Market-listed Aimflex Bhd for a total consideration of RM22 million or 22 sen per share.
In a bourse filing Monday, Luster said the company entered into a form for transfer of securities last Friday (Jan 21) with Aimflex executive chairman and shareholder Datuk Awang Daud Awang Putera.
Awang Daud, who is also Serba Dinamik Holdings Bhd co-founder, holds a 28.98% stake in Aimflex, according to the filing.
Aimflex through its subsidiary companies is principally involved in manufacturing and modification of specialised automation machines.
Luster said the acquisition — to be carried out by way of direct business transaction or traded through the official securities clearing and settlement method — is expected to allow potential synergies between the groups such as sharing customer bases which will provide Luster with a platform to penetrate the automation industry.
“Further, the acquisition may enable Luster’s manufacturing business segment to leverage Aimflex's expertise and experience in the manufacturing and modification of automation machines and fabrication of precision parts and metal panels, to create business opportunities to promote and embrace the digital revolution in accordance with the introduction of Industry 4.0.
“It also provides Luster the opportunity to expand its current market to Johor where a significant number of multinational companies (MNCs) are located,” the group noted.
According to Luster, the purchase consideration was arrived at on a “willing buyer-willing seller” basis and will be fully satisfied in cash or funded via bank borrowings.
“The purchase consideration of 22 sen per sale share is at a premium within the ranges from approximately 30% to 35% to the five-day up to six-month VWAP [volume weighted average market price] and a discount of 6.78% of the 12-month VWAP after taking into consideration the potential synergies in regards to sharing of technologies and engineering capabilities and customer bases,” it said.
Luster added that the board believes the exercise may contribute positively to the future earnings of the group.
At Monday’s midday break, Luster shares were up by 4.17% or half a sen at 12.5 sen with a market capitalisation of RM361.62 million.
Aimflex shares were half a sen or 2.86% higher at 18 sen, giving it a market value of RM214.22 million.