Multi Chem : Announcement Pursuant To Rule 706a Of The Listing Manual
February 18, 2022 at 05:01 am EST
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MULTI-CHEM LIMITED
(Company Registration No. 198500318Z)
(Incorporated in the Republic of Singapore)
ANNOUNCEMENT PURSUANT TO RULE 706A OF THE LISTING MANUAL
Pursuant to Rule 706A of the Listing Manual of Singapore Exchange Securities Trading Limited ("SGX-ST"), the Board of Directors of Multi-Chem Limited (the "Company" or together with its subsidiaries the "Group") wishes to announce the following transactions that occurred during the second half of the financial year ended 31 December 2021:
MEMBERS' VOLUNTARY LIQUIDATION OF A SUBSIDIARY
Multi-Chem PCB (Kunshan) Co., Ltd. ("Multi-ChemPCB Kunshan"), a wholly-owned subsidiary incorporated in the People's Republic of China, had received the Certificate confirming completion of the member's voluntary liquidation of Multi-Chem PCB Kunshan. Accordingly, Multi-Chem PCB Kunshan ceased to be a subsidiary of the Group.
An announcement on the above matter was made on 14 July 2021.
ACQUISITION OF SHARES IN M.TECH PRODUCTS PTE LTD
As announced on 30 September 2021 ("Announcement'), M.Tech Holdings Pte. Ltd. ("MTH"), a wholly- owned subsidiary of the Company, had entered into an Agreement (the "Agreement") on 23 September 2021 with, amongst others, all but one of the other existing shareholders ("Selling Shareholders") of M.Tech Products Pte Ltd ("MTP"), which agreement provided for the acquisition by MTH from the Selling Shareholders of an aggregate of 22% equity interest in MTP for an aggregate cash consideration of USD11,220,000, on the terms and conditions of the Agreement (the "September Acquisition"). Upon completion of the Acquisition, MTH held 98.75% equity interest in the total issued and paid-up share capital of MTP and, in effect, the Company's total equity interest in MTP increased from 76.75% to 98.75%.
Further to the Announcement, the Company made an announcement on 12 November 2021 relating to MTH acquired 50,000 ordinary shares representing 1.25% equity interest in MTP from the existing shareholder of MTP ("Selling Shareholder") at a cash consideration of USD637,500 (the "Acquisition").
The aggregate consideration for the September Acquisition and Acquisition was arrived at and was agreed on a willing-buyer,willing-seller basis, taking into account the net asset value of MTP based on the latest audited financial statements for the financial year ended 31 December 2020 and an assessment of the business prospects of MTP.
The Consideration for the September Acquisition and Acquisition was paid in cash. The September Acquisition and Acquisition were fully funded through the Group's internal resources.
The net asset value represented by the September Acquisition and Acquisition as at date of acquisition was approximately S$14,951,000.
The Acquisition is not expected to have any material impact on the consolidated NTA and EPS of the Group for the financial year ended 31 December 2021.
None of the Directors or substantial shareholders of the Group has any interest, direct or indirect, in the Acquisition, save for their shareholdings and directorship in the Company, MTH and MTP.
By Order of the Board
Han Juat Hoon Director
18 February 2022
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Multi-Chem Limited published this content on 18 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 February 2022 10:00:06 UTC.
Multi-Chem Limited is a Singapore-based investment holding company. It is a cybersecurity and network performance solutions provider. The principal activities of the Company are that of provision of value-added printed circuit board (PCB) related services to PCB fabricators and the distribution of other PCB related products and equipment to PCB fabricators. The Company has two reportable segments, being PCB business and Information Technology (IT) business. The PCB business segment provides PCB related services to PCB fabricators and distributes specialty chemicals and other PCB-related products and equipment to PCB manufacturers and rental of machines. The IT business segment relates to the distribution of hardware and software relating to internet and network products and the provision of maintenance services for those products.