Aviatron acquisition earnings dilutive for SAM Engineering

PETALING JAYA: Analysts remain neutral on Sam Engineering & Equipment (M) Bhd’s acquisition of Aviatron (M) Sdn Bhd due to single customer risk and the absence of a profit guarantee provided in the deal.

Recently, SAM Engineering announced it was acquiring a 100% stake in Aviatron for RM203mil cash from its own major shareholder Singapore Aerospace Manufacturing Pte Ltd (SAMPL) and settle the RM201mil shareholder loan Aviatron took from SAMPL.