Foundpac buys stake in laser stencils manufacturer for RM16.5 million

PETALING JAYA: Foundpac Group Bhd is acquiring a 75% stake in Dynamic Stencil Sdn Bhd (DSSB) for RM16.5 million.
The group said in a filing with Bursa Malaysia that it had entered into a share sale agreement with the vendors Lim Seng Chiew and Lim Seng Choon for the acquisition.
DSSB is principally engaged in the manufacture and sale of laser stencils. It registered a net profit of RM1.9 million for the financial year ended May 31, 2017. The purchase consideration is to be funded from internally-generated funds.
Foundpac is principally involved in the design, development, manufacture, marketing and sale of precision engineering parts, namely, stiffeners, test sockets, hand lids and related accessories.
It said the proposed acquisition is an opportune venture for the group to market laser stencils, which serves as a complementary component, to its customers.
Concurrently, Foundpac said it may also cross-sell its products to DSSB's customers.
With that, both parties may leverage on each other's customer base to increase their revenues.
"On these bases, the board believes that the proposed acquisition would contribute positively to the group's future earnings and financial position of the group."
Foundpac shares rose 2.5 sen to close at 91.5 sen, on some 15.17 million shares traded. It has a market capitalisation of RM338.6 million.