UG Healthcare Corporation Limited (Catalist:8K7) entered into Sale and Purchase Agreement to acquire 50% stake in UG NITREX, S. L. from Afaprot, S. L. and Martínez for ?0.5 million on June 5, 2024. Afaprot has sold 45% and Martínez has sold 5% of UG NITREX. Upon completion of the Acquisition, Unigloves Singapore will own 50% equity interest in UG NITREX and UG NITREX will be accounted as a joint venture between the Sellers and the Group. The Acquisition will be financed through the Company?s internal cash resources. The Purchase Consideration of ?0.5 million was arrived at on a willing-buyer, willing-seller basis after arm?s length negotiation, and taking into account among others, (i) the immediate ownership of the relevant licences, certifications, and trademarks for more than a hundred of stock keeping units (?SKUs?) of UG NITREX?s product portfolio of reusable gloves; (ii) the immediate market presence in Spain and neighbouring countries such as Portugal and France, strengthening the Group?s downstream distribution business in Southern Europe; (iii) the participation in a profitable and established business in reusable gloves for industrial applications, safety footwear, and other PPEs; (iv) the net tangible asset value of approximately ?0.2 million derived based on 50% equity interest in the net tangible asset value of UG NITREX for the financial year ended 31 December 2023. For the period ending December 31, 2023, UG NITREX, S. L. reported total revenue of ?2.67 million and EBITDA of ?0.12 million.
UG Healthcare Corporation Limited (Catalist:8K7) completed the acquisition of 50% stake in UG NITREX, S. L. from Afaprot, S. L. and Martínez for ?0.5 million on June 5, 2024.