KUALA LUMPUR: YBS International Bhd
has entered into a memorandum of understanding with Allied Technologies Holdings Pte Ltd for the acquisition of the former's precision manufacturing services units.
In a filing with Bursa Malaysia, the group said it will purchase 100% equity in the target companies for a total indicative consideration price of US$38mil, or RM167.2mil, based on the exchange rate of 4.40 as set out in the agreement.
According to the filing, the companies - Allied Precision Manufacturing (M) Sdn Bhd, Allied Precision Technologies (M) Sdn Bhd , Allied Precision (Thailand) Co Ltd and Allied Technologies (Saigon) Co Ltd - provide precision manufacturing services ranging from design and product development prototyping, tool and die fabrication, production and mechanical sub-assembly services to cater to the different needs of their customers who are mainly in the computer and computer peripherals industries.
"The target companies have a pool of skilled professionals with the expertise in providing precision manufacturing and mechanical sub-assembly services.
"The proposed acquisitions are part of the company’s strategic plan to effectively grow its business by widening its product and service offerings," said YBS.
