Thursday, 8 March 2012

Pantech buys UK-based Nautic Steel for RM45m

KUALA LUMPUR (March 8): PANTECH GROUP HOLDINGS BHD [], a pipes, fittings and flow controls solutions provider, has acquired the entire stake in UK-based Nautic Steels (Holdings) Ltd for GBP9.5 million or RM45.46 million.

In a statement to Bursa Malaysia on Thursday, Pantech said the acquisition will help the company expand its geographical presence and product range.

“The consideration will be satisfied through a combination of funds raised. This includes RM9.75 million from rights issues of ICULS (Irredeemable Convertible Unsecured Loan Stock), RM25 million from a term loan provided by a licensed bank in Malaysia and the balance consideration will be paid by internally generated funds, Pantech said.

Trading of Shares in Pantech has been suspended from 9am and will resume at 10am on Thursday in conjunction with the announcement of the exercise. The stock was last traded at 52.5 sen.

Barring any unforeseen circumstances, Pantech believes the acquisition is in line with the Group’s strategies to grow its core businesses. The company said the inclusion of Nautic into Pantech’s stable will help the acquirer expand its foothold as a major pipes, fittings and flow controls solutions providers.

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