Solid Automotive to buy 90% of Borneo Technical

PETALING JAYA: Solid Automotive Bhd is looking to acquire a 90% stake in Borneo Technical Co (M) Sdn Bhd, a company involved in the marketing and distribution of automotive replacement parts, industrial supplies and marine products.
Solid said in a filing with the stock exchange that it had on April 2 entered into a memorandum of understanding (MoU) with Toyota Tsusho Corp, Toyota Tsusho (Malaysia) Sdn Bhd and Borneo Technical Co (M) Sdn Bhd to outline the basic principles for the negotiation in relation to the proposed shares subscription.
Solid said the MoU is to enable it to perform due diligence on Borneo and to allow the parties to negotiate the terms and conditions for the proposed subscription. A definitive shares sale agreement is expected to be signed within three months.
“Solid believes that Borneo possesses the required distribution network, product range and brand name and reputation in line with Solid’s plans for the expansion of its automotive aftermarket business.”
It will fund the acquisition through internally generated funds and/or bank borrowings.
Solid’s share price declined half a sen or 1.4% to close at 35 sen today on some 1.85 million shares done.