YLI acquires 80% stake in Damini Corp for RM10mil

KUALA LUMPUR: YLI Holdings Bhd has proposed to acquire 80% equity interest in Damini Corporation Sdn Bhd for a purchase consideration of RM10mil.

In a filing with Bursa Malaysia, YLI said it entered into a conditional share sale agreement with Bumiraya Armani Sdn Bhd for the proposed acquisition of four million ordinary shares, representing 80% equity interest in Damini.

The purchase consideration will be satisfied via a combination of cash of RM3.5mil and the issuance of 10 million new ordinary shares in YLI at an issue price of 65 sem per share.

Damini is principally involved in supplying chemicals and equipment for water treatment, oil and gas and general trading.

“The proposed acquisition is expected to create synergistic benefits to complement YLI’s pipe business by expanding its range of products and services offering to include the assembly and trading of water and electric meters as well as chemicals for its waterworks and sewerage customers,” YLI said.

“YLI and the Damini Group will be able to cross-sell each other’s product offerings to their existing and new customers which will allow the group to bid and tender for larger projects as a ‘one-stop solution provider’ with more competitive products mix and pricing,” it added.

As at May 30, Damini Group has approximately RM74.8mil of unbilled orders based on its major secured contracts.

“The proposed acquisition will improve the earnings base of YLI and enhance the performance and financials of the group moving forward which will in return increase shareholders’ value in the long run,” YLI said.