Terence Tea, 45, was appointed executive chairman of WE Holdings in Mar 2013.WE will pay S$6.82 million to acquire Europtronic (Singapore) Pte Ltd, a wholly-owned subsidiary of Europtronic Group, which is listed on the Main Board of the Singapore Exchange.WE said the acquisition is in line with its intention to expand its components business to achieve economies of scale and to broaden the Group’s revenue stream.
The purchase will be funded through the issue of 130,152,672 new shares of WE Holdings at 5.24 cents apiece to Europtronic Group.
Upon completion of the acquisition, Europtronic shall have at least S$0.5 million in its bank account as working capital and at least S$3.83 million in available banking facilities.
WE Holdings said: “We have conducted extensive due diligence to ensure that the acquisition is a good investment for us to expand our component business. The acquisition allows us to tap on a different product range within the component business and leverage on Europtronic’s extensive network of customers and distribution channels. This will aid us in generating economies of scale for our component business.”
Europtronic Group, after divesting its subsidiary, still has a components manufacturing business as well as a business that specialises in tissue culture of fuel crop seedlings and ornamental plantlets. The divestment is also a part of the process relating to a proposed reverse take-over.
For the full WE Holdings announcement, click here.
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Zhou Tao, executive chairman and CEO of Dukang Distillers. NextInsight file photo
DUKANG DISTILLERS has a new substantial shareholder, FIL Limited (aka Fidelity Worldwide Investment), a global asset management services company.
FIL owns 46,535,000 shares of Dukang, or a 5.83% stake in the baijiu producer, according to a filing posted last night on the Singapore Exchange website.
Dukang has recently reported that FY2013 (ended June) net profit jumped 78.7% yoy to RMB389.7 million.
Revenue ws up 31.7% yoy to RMB2.4 billion arising from a 144.6% increase in sales of products under its “Dukang” brand.
Another positive: Gross profit margin improved 3.4 percentage points yoy to 40.9% due to a shift in product mix towards higher-margined “Dukang” brand products.
However, no dividend was proposed.
The stock closed yesterday at 43.5 cents, or a PE of 4.6X.
Recent article: DUKANG: FY2013 net profit up 78.7% at Rmb 389.7 million
