Press Metal unit acquires four aluminium-related firms
KUCHING: Press Metal Aluminium Holdings Bhd’s wholly-owned subsidiary PMB (Klang) Sdn Bhd is buying several aluminium-related companies in Peninsular Malaysia and Sabah for cash consideration of RM44.39 million.
Three of the companies are owned by Everlast Aluminium (M) Sdn Bhd, which is 100 percent-owned by PMB Technology Bhd (PMBT). Press Metal is the single largest shareholder of PMBT, with an equity interest of 27.43 percent as at April 1, 2019.
Everlast Aluminium entered into a conditional sale and purchase agreements with PMB Klang on Oct 29 for the proposed disposal of the entire equity interest in three companies — PMB Central Sdn Bhd, PMB Northern Sdn Bhd and PMB Eastern Sdn Bhd — for RM43.182 million, PMBT said in a filing with Bursa Malaysia.
The breakdowns of the disposal consideration are RM24.958 million for PMB Central, RM9.858 million for PMB Northern and RM8.366 million for PMB Eastern.
PMB Central is principally engaged in the marketing of gypsum board, aluminium extrusion and related products while PMB Northern is involved in the marketing of aluminium extrusion and other related products.
PMB Eastern’s core business is trading of all types of aluminium sections, gypsum board and other related products.
PMBT has also entered into a conditional sale and purchase agreement for the disposal of the entire equity interest in PMB Aluminium Sabah for RM1.204 million.
PMB Aluminium Sabah is principally engaged in the marketing of gypsum board, aluminium extrusion and other related products.
PMB Klang is involved in the manufacturing and trading of aluminium products.
PMBT group is principally involved in the business of investment holding, marketing and trading of aluminium extrusion, manufacturing and fabrication of aluminium curtain wall and cladding systems and other aluminium related products as well as manufacturing of
metallic silicon.
According to PMBT, the company is expected to record a gain of about RM10.01 million from disposal of the four companies.
From the gross proceeds of RM44.39 million from the disposals, PMBT said RM37.785 million would be utilised by the group for the purchase of low ash coal and carbon electrodes which are the main raw materials for its metallic silicon products.
“Subject to the completion of the proposals, the board proposes to distribute approximately RM3.07 million to the entitled shareholders of PMBT in the form of proposed special dividend,”
it added.
Another RM3.1 million is earmarked for working capital which would be utilised to finance the group’s day-to-day operations.
The balance of RM430,000 is set aside to pay for the expenses of the proposed disposals of the four companies.
On the rationale for the disposal of the four companies, PMBT said it is to diversify the group’s business to include the manufacturing of metallic silicon approved by shareholders in an EGM in
April, 2018.
“The diversification has been identified by the board as part of its growth strategy to enhance the group’s future prospects and expand its revenue stream.
“The diversification is in line with the board’s objective to improve the revenue and earnings of the PMBT group and enhance shareholders’ value after taking into consideration the prospects and outlook of the metallic silicon industry,” it added.
