News

The Board of Directors of APM Automotive Holdings Berhad (“APM” or “the Company”) informs that APM Auto Components (Australia) Pty Ltd (“Purchaser”), a wholly-owned subsidiary of Auto Parts Holdings Sdn Bhd which in turn is a wholly-owned subsidiary of APM, has on 1 August 2014 completed the acquisition from McConnell Seats Australia Pty Ltd (“McConnell Australia” or “ Vendor”) of its public sector mass transit seating manufacturing business known as “McConnell Seats Australia” including all goodwill and assets associated with the business free from encumbrances (“Business Acquisition”) for a cash consideration AUD4.7million (the “Purchase Price”).  McConnell Australia is one of the major designer and manufacturer of transport seating in Australia.

The Purchase Price for the Business Acquisition was arrived at on a willing buyer-willing seller basis and is subject to adjustment if the value of the net assets shall be more or less than the agreed amount in accordance with the Contract of Sale of Business dated 16 July 2014. The Purchase Price was paid and the amount, if any, which shall be payable after adjustment, shall be paid entirely by cash from internally generated funds of APM Group.  

Currently, the APM Group exports bus seats to Australia. The Business Acquisition is part of th APM Group’s strategy to expand its market base overseas and will create an opportunity for the APM Group to leverage on the existing products and customer base of McConnell Australia and will further strengthen the APM Group’s existing market presence in Australia.  With the Business Acquisition, an additional range of seat models / designs could be marketed to other countries by the APM Group. 

The highest percentage ratio applicable to the Business Acquisition pursuant to Paragraph 10.02(g) of the Bursa Malaysia Securities Berhad Main Market Listing Requirements is 1.53% based on the audited financial statements of APM for the financial year ended 31 December 2013.

The Business Acquisition is not expected to have any material effect on the earnings per share, net assets per share and gearing of the APM Group for the current financial year ending 31 December 2014. However, it is expected to contribute positively to the Group’s earnings in the long term.  

None of the directors or major shareholders of APM or persons connected with them, has any interest, direct or indirect, in the Business Acquisition.

This announcement is dated 4 August 2014.