Fitters to acquire 40% stake in Germany-based AHT for RM6.6m

PETALING JAYA: Fitters Diversified Bhd's wholly-owned subsidiary Future NRG Sdn Bhd is acquiring 40% equity interest in A.H.T. Syngas Technology N.V. (AHT) for a cash consideration of €1.6 million (RM6.6 million).

In a filing with Bursa Malaysia yesterday, Fitters said Future NRG had entered into a subscription agreement and share purchase agreements in relation to the proposed acquisition, which entails 600,000 shares of AHT priced at €2.665 per share.

The proposed acquisition entails a subscription by Future NRG of a total of 465,909 shares in AHT at Euro 1.4 million (RM5.8 million), a purchase of 101,581 shares in AHT from Matthias Kuhnel at €152,371.50 and a purchase of 32,510 shares in AHT from Cupido Beteiligungs GmbH at €48,765.

Germany based AHT is anticipated to be listed on the stock exchange in Hamburg on July 31.

Its wholly-owned subsidiary AHT Services GmbH is a specialist in the business of engineering and production of biomass and coal-co-generation systems (gasification) for the production of electricity and heat. It has set up power plants in various countries such as India, Indonesia and Japan.

For the financial year ended Dec 31, 2014, AHT posted a net loss of €45,000 while net assets stood at €3.9 million.

"Having a significant stake in AHT, Fitters will have further access to AHT's state-of-the-art technologies and will benefit from its planned expansion into Asia, including China and the Southeast Asia region.

"We are optimistic that this investment would go a long way towards placing us at the forefront of the renewable energy sector, and contribute positively to the group in the future," said its managing director Datuk Richard Wong.

The proposed acquisition is expected to bring economic benefits to the group's renewable energy division and contribute positively to the group's future earnings.

The proposed acquisition, which will be funded by internally generated funds, is expected to be completed by Aug 5.