Maybulk to acquire E Metall Systems for RM70mil

KUALA LUMPUR: Malaysian Bulk Carriers Bhd (Maybulk) has proposed to acquire E Metall Systems Sdn Bhd) (EMTS) for RM70mil cash.

In a filing with Bursa Malaysia, Maybulk said it had entered into a share sale agreement with Grand East Metal (Kulim) Sdn Bhd and Goh Ting Hong (collectively vendors) for the acquisition of one million ordinary shares in EMTS, representing the entire equity interest in EMTS.

Following the acquisition, EMTS will become a wholly-owned subsidiary of Maybulk.

EMTS is an end-to-end racking systems, logistics storage and retail display solutions provider, offering consultancy services, warehouse system design, supply of metal shelving solutions and installation works to both local and international clients.

The vendors guarantee that EMTS shall achieve a profit after tax of not less than RM6mil only for each financial year ended Dec 31, 2022 and 2023.

Maybulk said the purchase consideration shall be fully satisfied in cash from the internally-generated funds of Maybulk and its subsidiaries.

“The acquisition is in line with the group’s objective of looking for new strategic business opportunities to diversify its revenue streams to mitigate the risk of overdependence on its existing core business which is subject to fluctuations in ship charter prices which are beyond the group’s control,” it said, adding that the acquisition would provide an opportunity for the group to venture into the business of commercial and industrial shelving.

“The group is of the view that the demand for steel shelving solutions is expected to remain robust, driven by amongst others, the growth of the wholesale and retail industry and e-commerce activities in Malaysia as well as the continued expansion of logistics and warehousing companies,” it said.