Frontken Corporation Berhad completed the acquisition of an additional 11.42% stake in Ares Green Technology Corporation from Marketech International Corp., Cheng Zhong Investment Co., Ltd., Primasia Development Co. Ltd., Lee I-Jung and Yu-Jyuan Wong.
June 28, 2017
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Frontken Corporation Berhad (KLSE:FRONTKN) entered into share sale and purchase agreement to acquire additional 11.42% stake in Ares Green Technology Corporation from Marketech International Corp. (TSEC:6196), Cheng Zhong Investment Co., Ltd., Primasia Development Co. Ltd., Lee I-Jung and Yu-Jyuan Wong for TWD 93.7 million on June 6, 2017. Frontken will acquire a total of 3.89 million shares of Ares Green Technology for TWD 24.1 per share in cash. 20% of the consideration payable to Cheng Zhong Investment and Marketech International (batch 1 seller) will be paid on signing of agreement and 30% of the consideration to the batch 1 sellers will be paid within seven days of closing and remaining 50% of the consideration to the batch 1 sellers will be paid within one month of closing. The entire consideration to Primasia Development, Lee I-Jung and Yu-Jyuan Wong Frontken will be paid on closing. Frontken will not be assuming any liability, including contingent liability and guarantee, pursuant to the transaction. Frontken will acquire 0.13 million, 2.71 million, 0.002 million, 0.02 million and 1.03 million shares from Cheng Zhong Investment, Marketech International, Lee I-Jung, Yu-Jyuan Wong and Primasia Development respectively. On closing, Frontken's stake in Ares Green Technology will increase from 73.22% to 84.64%. The purchase consideration will be funded via internally generated funds. If the sellers fail to comply with any of their obligations under the agreement, Frontken may request the sellers to pay a penalty of 20% of the total consideration within a specified time period.
The transaction is subject to the approval from the Ministry of Economic Affairs Investment Commission and does not require the approval of any government authorities in Malaysia or the shareholders of Frontken. Closing will take place on June 23, 2017. The transaction will not have any effect on the share capital, earnings per share, net asset per share and gearings of Frontken for the year ending December 31, 2017.
Frontken Corporation Berhad (KLSE:FRONTKN) completed the acquisition of an additional 11.42% stake in Ares Green Technology Corporation from Marketech International Corp. (TSEC:6196), Cheng Zhong Investment Co., Ltd., Primasia Development Co. Ltd., Lee I-Jung and Yu-Jyuan Wong on June 28, 2017.
Marketech International Corp. is principally engaged in the provision of technology integration and automation support systems for semiconductor and photo electronic industries. The Company operates its business mainly in four segments. Its high-tech manufacturing equipment and materials sales and service segment includes the semiconductor mask process, the semiconductor integrated circuit (IC) process, the semiconductor integrated circuit package process, among others. Its automated supply system segment involves in the provision of automation supply systems, including gas automation supply systems, purified water processing systems and others. Its integrated system segment provides integrated systems, including turn key projects and ordinary industrial projects, among others. The customized equipment research, development and manufacturing segment is engaged in equipment manufacturing and development business.
Frontken Corporation Berhad completed the acquisition of an additional 11.42% stake in Ares Green Technology Corporation from Marketech International Corp., Cheng Zhong Investment Co., Ltd., Primasia Development Co. Ltd., Lee I-Jung and Yu-Jyuan Wong.