PETALING JAYA: EG Industries Bhd has received an offer from Singapore Exchange-listed Accrelist Ltd proposing to sell a 17.50% stake in subsidiary Jubilee Industries Holdings Limited to EG for S$6.95 million (RM21 million).
Accrelist’s principal business segments consist of medical aesthetics, retail and sale of pharmaceutical and medical goods, systems integration for artificial intelligence and facial recognition technology for the operation of an unmanned shop as well as providing digital marketing services and cashless payment solutions. Accrelist also has the mechanical and electronic business units in the manufacturing sector through its 65.82%-owned Jubilee.
Through its subsidiaries, Jubilee is principally involved in the provision of precision plastic injection moulding, mould design and fabrication services, integrated electronic components distribution services and modular design fabrication. Jubilee is also a major shareholder of EG. Jubilee posted a net profit of S$2.71 million based on its latest audited financial statements ended March 31, 2019. Its net assets is worth S$40.76 million.
The proposed transaction is deemed to be a related party transaction.
EG group executive chairman and major shareholder Datuk Terence Tea Yeok Kian is Accrelist executive chairman, managing director and substantial shareholder. EG group CEO Datuk Alex Kang Pang Kiang is also a director of Jubilee’s wholly-owned indirect subsidiary WE Total Engineering Sdn Bhd, which in turn is a subsidiary of Accrelist.
The board (excluding the interested directors) has not made a decision on the proposed transaction and the terms have yet to be finalised and agreed upon.
“The board may or may not accept the offer, subject to further deliberation,“ EG said in a stock exchange filing.
It said the EG board (excluding interested directors) will ensure that the interested directors abstain from board deliberation and voting on the relevant resolution. It will also ensure that the interested shareholders abstain from voting in the meeting to obtain shareholders’ approval.
