News

The Board of Directors of APM Automotive Holdings Berhad (“APM” or “the Company”) wishes to inform that McConnell Seats Australia Pty Ltd (ACN 083 344 389)(“MSA”)(“Purchaser”), a wholly-owned subsidiary of Auto Parts Holdings Sdn Bhd, which in turn is a wholly-owned subsidiary of APM, has on 9 March 2016 completed the acquisition from RBC Bearings Pty Ltd (“RBC” or “Vendor”) of all its assets associated with its locomotive seat manufacturing and services business known as “Locomotive Seats Australia” including all goodwill free from encumbrances (“Business Assets Acquisition”) for a cash consideration of AUD1,659,578.00 (the “Purchase Price”).  The Purchase Price for the Business Assets Acquisition shall be paid entirely from internally generated funds of the APM Group.

RBC is the exclusive importer and distributor of the products of Seats Inc. in Australia and also manufacturer and supplier of railroad wall mounted folding seats, railroad drive/guard and observer seats and sugar cane locomotive driver seats.

The Business Assets Acquisition provides an opportunity for MSA to gain a foothold in the Queensland market in the provision of turnkey services of seat installation and refurbishment to local bus builders and bus operators. MSA would thereby expand its operations and provide better services to its current and potential customers. In addition, there would now be an additional range of train/locomotive driver seats which may be marketed to other countries by the APM Group.

The highest percentage ratio applicable to the Business Assets Acquisition pursuant to Paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad is 0.45% based on the audited financial statements of APM for the financial year ended 31 December 2014.

The Business Assets 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 2016. 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 Assets Acquisition.

This announcement is dated 9 March 2016.