Business
Acquisition
Acquisition.
About this update from Trifast Plc
[{"type":"text","content":"\n Trifast PLC\n16 October 2006\n\n\n 16 October 2006\n\n Trifast plc\n Trifast to Acquire 25% Stake in Leading Malaysian Manufacturer Techfast\n\nTrifast plc (\"Trifast\") is pleased to announce that it has entered into an\nagreement to acquire 25 per cent of the ordinary shares in issue of Techfast\nHoldings Bhd (\"Techfast\"), a leading Malaysian specialised manufacturer listed\non the MESDAQ Market of the Malaysian Stock Exchange, for a total consideration\nof approximately £2.78 million (or Ringgit Malaysia 0.50 per share). The\nacquisition is expected to be earnings enhancing in the first full year or\nownership for Trifast.\n\nTechfast is based in Kuala Lumpur and manufactures sheet metal fasteners from\nits two factories in Malaysia and its factory in Suzhou (China). During the\nfinancial year ended 31 December 2005 Techfast made a profit before tax of £0.8\nmillion on a turnover of £3 million. For the six months ended 30 June 2006,\nTechfast has generated a turnover of £2.1 million (or RM14.3 million).\n\nThe shares have been acquired from Techfast's senior management team and also a\nsubstantial shareholder.* The senior management team will still own 24 per cent\nbetween them after the deal and will continue with their current roles. The rest\nof the shares are held with various investors on the Malaysian market. On\ncompletion of the acquisition Jim Barker, Chief Executive of Trifast plc, will\njoin the Techfast board.\n\nThe acquisition is subject to final regulatory approval from the Foreign\nInvestment Committee (\"FIC\"), and of any other relevant authority requested for\nby the FIC, and at the present time Trifast anticipates that the sale will\ncomplete within two months.\n\n\n\n\n\nCommenting on the acquisition Jim Barker, Chief Executive of Trifast said:\n\"We have worked in partnership with Techfast over many years and have been very\nimpressed by the quality of its management and technologies. We are delighted to\nhave the opportunity to take a significant investment stake in the business\nwhich will give Trifast access to new technologies while complementing our\nexisting Asian manufacturing capability, marketing and distribution across the\narea. Specifically, this partnership will assist Trifast in accessing the supply\nchain of the largest self-clinch manufacturer in Asia and will significantly\nincr...