Boilermech buys 35% stake in TERA VA for RM8.2mil

KUALA LUMPUR: Boilermech Holdings Bhd has entered into a share acquisition agreement with Leong Jit Min for the acquisition of 245,000 shares, or 35% stake in TERA VA Sdn Bhd for RM8.2mil cash.

Leong is the main executive director managing the business of TERA and undertakes to continue his executive service with TERA.

TERA is principally in the business of installation of solar green power energy products and electrical machinery products.

Boilermech said the acquisition would be financed through internally generated funds.

It said the purchase price of RM8.2mil was derived on a willing buyer-willing seller basis, and taking into consideration the profit guarantee of RM4.2mil.

Boilermech said Leong shall be liable to compensate the company in proportion of the profit shortfall in the event that the aggregate profit of TERA for the entire guaranteed period is less than the guaranteed amount.

“The acquisition is part of Boilermech’s growth strategy in developing sustainable environmental solutions. It is also in line with the group’s effort in streamlining its shareholding structure in TERA,” it said.