16th Oct 2006 10:33
Trifast PLC16 October 2006 16 October 2006 Trifast plc Trifast to Acquire 25% Stake in Leading Malaysian Manufacturer Techfast Trifast plc ("Trifast") is pleased to announce that it has entered into anagreement to acquire 25 per cent of the ordinary shares in issue of TechfastHoldings Bhd ("Techfast"), a leading Malaysian specialised manufacturer listedon the MESDAQ Market of the Malaysian Stock Exchange, for a total considerationof approximately £2.78 million (or Ringgit Malaysia 0.50 per share). Theacquisition is expected to be earnings enhancing in the first full year orownership for Trifast. Techfast is based in Kuala Lumpur and manufactures sheet metal fasteners fromits two factories in Malaysia and its factory in Suzhou (China). During thefinancial year ended 31 December 2005 Techfast made a profit before tax of £0.8million on a turnover of £3 million. For the six months ended 30 June 2006,Techfast has generated a turnover of £2.1 million (or RM14.3 million). The shares have been acquired from Techfast's senior management team and also asubstantial shareholder.* The senior management team will still own 24 per centbetween them after the deal and will continue with their current roles. The restof the shares are held with various investors on the Malaysian market. Oncompletion of the acquisition Jim Barker, Chief Executive of Trifast plc, willjoin the Techfast board. The acquisition is subject to final regulatory approval from the ForeignInvestment Committee ("FIC"), and of any other relevant authority requested forby the FIC, and at the present time Trifast anticipates that the sale willcomplete within two months. Commenting on the acquisition Jim Barker, Chief Executive of Trifast said:"We have worked in partnership with Techfast over many years and have been veryimpressed by the quality of its management and technologies. We are delighted tohave the opportunity to take a significant investment stake in the businesswhich will give Trifast access to new technologies while complementing ourexisting Asian manufacturing capability, marketing and distribution across thearea. Specifically, this partnership will assist Trifast in accessing the supplychain of the largest self-clinch manufacturer in Asia and will significantlyincrease our exposure to the lucrative LCD television market. This investment isan important step in building Trifast as the premier brand in the European andAsian Industrial Fastener Market." Yap Yoong Sing, Chairman and Managing Director, of Techfast added:"Techfast and Trifast have enjoyed a fruitful partnership over the years and weare delighted to welcome Trifast as a significant shareholder in our business.The two businesses have complementary technologies and geographical strengthsand we look forward to a successful mutually beneficial cooperation for our twofast growing businesses over the years to come." - ENDS - * Assuming the completion of the conditional agreement and based on the Vendors'shareholdings as at 13 October 2006, the shareholding of the Vendors in Techfastwill be as follows: As at 13.10.2006 To be Disposed under After Completion conditional SPA of DisposalVendors Designation No. Of % No. Of Shares % No. Of % Shares Shares Yap Substantial 31,473,982 20.71 (14,800,000) 9.74 16,673,981 10.97Yoon Shareholder/Sing Director Lim Substantial 21,355,597 14.05 (10,400,000) 6.84 10,955,597 7.21Tock Shareholder/Ooi Director Fong Substantial 18,353,164 12.07 (9,800,000) 6.45 8,553,164 5.63Kok Shareholder/Leong Director Chin Substantial 11,679,394 7.68 (3,000,000) 1.97 8,679,394 5.71Chee ShareholderHeun Enquiries:Trifast Plc Tel: 01825 747 366Jim Barker, Chief ExecutiveStuart Lawson, Finance Director Smithfield Consultants Tel: 020 7360 4900Noemie de Andia / Will Swan Notes to Editors About TrifastTrifast plc is an international manufacturer and distributor of industrialfastenings to the assembly industries, with operations in Europe, the Americasand Asia. The Company's products include miniature screws, customer specificitems and high tolerance fastenings. Established in the South of England in1973, the Company has grown by acquisitions over the years and floated on theLondon Stock Exchange in 1994. The acquisition of Serco Ryan, the third largestUK competitor, in 2005 has transformed the Company into a major player in theindustrial fastener market with ambitions to become Europe's leading brand. Trifast has a market capitalization of £54m. About TechfastTechfast Holdings Berhad ('Techfast") was listed on the MESDAQ Market of BursaSecurities Berhad, Malaysia in June, 2006. Techfast presently has four operatingsubsidiaries specialising in the manufacture of self-clinching fasteners ("SCF")and electronic hardware. Three of the subsidiaries are operating in Malaysia andone operating in Suzhou, China. Techfast has recently set up a plating plant tomeet the demands of its own electroplating services to maintain its high productquality. One of the subsidiaries, Techfast Manfacturing Sdn. Bhd. ("TMSB") has won manyindustry awards and fast becoming one of the most outstanding Small and Mediumenterprises in Malaysia. Its export sales to over 31 countries spanning 5continents currently account for about 75% of its total revenues. TMSB is one ofthe few if not the only manufacturer specializing in the making of SCFs in theAsean region. Techfast has a market capitalization of £11.5 m This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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