PETALING JAYA: KHPT Holdings Bhd has successfully secured shareholders’ approval at its EGM for the strategic acquisition of 100% equity interest in Ngai Cheong Metal Industries Sdn Bhd (NCMI) for RM19.5mil.
In a statement, the autoparts manufacturer said the approved resolution validates the reallocation of RM16.37mil from KHPT’s initial public offering proceeds to partially finance the transaction.
The company added that the balance is to be covered via internally generated funds and/or bank borrowings.
“By combining both operations, NCMI will become a wholly-owned subsidiary of KHPT, unlocking substantial technical synergies and establishing an immediate operational foothold in high-precision metal stamping and manufacturing solutions serving customers across both the electrical and electronics and automotive sectors.
“The acquisition includes rigorous protective measures to secure shareholder value, highlighted by a profit guarantee provided by the vendors of RM7.5mil covering the financial period from the completion of the conditional share sale and purchase agreement to the financial year ending Dec 31, 2028 (FY28).
“This performance targets a profit after tax of RM1.5mil for the period from completion to FY26, and RM3mil each for FY27 and FY28.
“It will be backed by an identical matching retention sum of RM7.5mil withheld as security,” the company noted in the statement.
