by ASILA JALIL/ pic credit: ta-win.com
COPPER products manufacturer Ta Win Holdings Bhd entered into a conditional agreement for the acquisition of Sin Line Tek Electronics Co Sdn Bhd which will add value to Ta Win’s copper rod and wire products.
Ta Win’s ED Tan Poo Chuan said besides further extending its existing product range, the group will financially benefit from the profit guarantee of RM2.6 million and RM3 million for 2021 and 2022 respectively.
“Over the long-term, we are confident that this proposed investment will contribute positively to the group’s bottomline, more so given Sin Line Tek’s strong track record and experience in the industry, and it plans to undertake research and development to expand its wire harness and assembly product range for application in the automotive industry,” he said in a statement yesterday.
Ta Win will have a 51% stake in Sine Line Tek and it entails a share sale agreement for the proposed acquisition of 1.75 million ordinary shares in Sine Line Tek, representing 30% of the enlarged issued share capital of Sin Line Tek for RM12.2 million.
“The exercise also includes a proposed subscription agreement involving the subscription of 1.22 million subscription shares, representing 21% of the enlarged issued share capital of Sin Line Tek after the completion of the proposed investment, for a total subscription amount of RM8.5 million,” Ta Win stated in a release yesterday.
Tan added that the group’s strong fundamentals will enable it to get through the tough environment caused by the Covid-19 pandemic as its core business remained resilient despite the challenging period.
Increased reliance on electrical and electronic products among consumers would enable the group to witness sustained growth in demand for its cable, wire harness and alternative current and direct current (AC & DC) power cords over the long-term, he said.
“Building on this, the proposed acquisition of Sin Line Tek is part of our strategic thrust to strengthen our core business by leveraging on viable prospects in the E&E industry, which is a key economic sector for the nation, contributing approximately 4.8% of Malaysia’s GDP in 2019.
“As demand for electrical and electronics (E&E) products continues to grow locally and globally, we view this as a synergistic opportunity for the group to integrate our existing business in the manufacturing of copper products, with the downstream business operations of Sin Line Tek in the manufacturing and supply of cable, wire harness and AC & DC power cords for the E&E industry,” he said.
He added that it provides the group opportunities to integrate its business to further venture into the downstream copper rod and wire supply chain, with the manufacturing and supply of cable, wire harness and AC & DC power cords for the E&E industry.