Artroniq to diversify business via acquisition in precision tools trader

KUALA LUMPUR: Artroniq Bhd is acquiring 156,000 ordinarty shares representing a 60% stake in precision tools component trader Fujim Digital Sdn Bhd for RM12mil.

In a filing with Bursa Malaysia, it said the purchase of the equity from sole shareholder Teoh Boon Thiam will be satisfied with RM6mil cash and RM6mil via the issuance of new shares in Artroniq.

As per the agreement, the vendor will provide a profit guarantee to Artroniq, which entails a net profit of not less than RM2.1mil for the period of May 1, 2022 to April 30, 2022, and RM2.1 mil for the subsequent period of May 1, 2023, to April 30, 2024.

In conjunction with the acquisition, Artroniq proposed to undertake a diversification of its existing principal activities and those of its subsidiaries to include precision engineering.

It said the purchase was in line with its strategy to reduce its reliance on its ICT business and find a new income source for the group.

In 2020, the group had ceased its manufacturing business of resin compound for wire and cable and for other industries.