PETALING JAYA: Pentamaster Corp Bhd's wholly-owned subsidiary, Pentamaster InnoTeq Sdn Bhd (PISB) has subscribed to a 29.9% stake in Everready Precision Industrial Corp (EPIC) for US$6.78mil (RM29.88mil).
EPIC is mainly involved in designing and manufacturing end-to-end optoelectronics solutions that cover optical moulds to lenses and 3D sensing modules.
In a filing with Bursa Malaysia, Pentamaster said the subscription price of US$0.4079 (RM1.80) per share was arrived at after arm’s length negotiations between both the parties.
The agreement took into account EPIC's intellectual properties and technology know-how, as well as its Greater China, plans that meet Pentamaster’s business strategy objectives.,
“EPIC has also proposed establishing a manufacturing joint venture in China with the investment arm of a major enterprise in China for its business expansion where the subscription price has been factored into for such plan by EPIC,” Pentamaster said.
Upon completion of the proposed subscription, PISB will be entitled to appoint one of the board of directors in EPIC.
“The proposed subscription is intended to expand Pentamaster’sbusiness through investment into technology solutions and applications that are synergistic to the group. Particularly on the group’s business strategies in its geographical expansion and product and solution diversification in
vertically integrating for its electro-optical segment.
“Barring unforeseen circumstance, the Board believes that the proposed subscription would contribute positively to Pentamaster’s financial performance in the medium to long term,” it said.