LTKM to enter digital manufacturing companies

PETALING JAYA: LTKM Bhd has put ahead a collection of proposals to divest its current enterprise to its main shareholder and enterprise into the availability of digital manufacturing companies (EMS) by way of the acquisition of Native Meeting Sdn Bhd.

In an announcement, loss-making LTKM proposed that its main shareholder with a 71.6% stake, Ladang Ternakan Kelang Sdn Bhd, purchase its rooster egg manufacturing operations for RM158.83mil.

This will probably be accompanied by a proposed particular dividend and capital compensation of RM1.1098 per share to shareholders amounting to RM158.83mil.

Out of this, RM113.69mil will go in direction of Ladang Ternakan Kelang to assist fund its buy of the operations.

Subsequently, there will probably be a proposed consolidation of two current LTKM shares into one share.

Native Meeting, an EMS supplier, will change into a wholly-owned subsidiary of LTKM whereas the distributors of Native Meeting will change into LTKM’s controlling shareholders with a 56.6% fairness curiosity within the firm following the proposed acquisition and proposed restricted difficulty.

In the meantime, LTKM additionally proposed to amass 100% fairness curiosity in Native Meeting for RM336mil.

This will probably be glad by way of RM100mil money and the issuance of 393.33 million new LTKM shares at a problem worth of 60 sen apiece.

The distributors will present a revenue assure of a minimal revenue after tax (PAT) of RM28mil for the monetary yr ending Dec 31, 2022 (FY22), or not lower than an combination of RM50mil PAT for FY22 and FY23.

Primarily based on the assured PAT of RM28mil for FY22, the acquisition consideration represents a worth to earnings a number of of 12 instances.

The applying for the proposals is predicted to be submitted to the related authorities by the second quarter of 2022.

Topic to approvals from related events together with the Securities Fee, Bursa Malaysia in addition to shareholders of LTKM, the proposals are anticipated to be accomplished within the first half of 2023.

M&A Securities Sdn Bhd is adviser to LTKM for the proposals.

Native Meeting, which began operations in 2000, is a producer of digital, electrical and plastic injection molded elements, and sub-contract assembler {of electrical} home equipment and gear.

Its principal markets are Malaysia and Singapore.

For the monetary yr ended Dec 31, 2021, Native Meeting achieved a PAT of RM20.06mil on the again of a income of RM116.35mil.


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