KUALA LUMPUR (March 23): Copper wires and rods manufacturer Ta Win Holdings Bhd said its wholly-owned subsidiary, Cyprium Capital Sdn Bhd, is acquiring Asia Poly Holdings Bhd's 15% stake in Cyprium Wire Technology Sdn Bhd (CWT) for RM12 million.
“The proposed acquisition is undertaken to increase the company’s effective equity interest in CWT which would result in CWT being a 66%-owned subsidiary of the company which would represent greater control in decision making by the company to drive and influence the future strategic direction of CWT,” said Ta Win a in a bourse filing.
CWT is involved in the manufacturing of wire and cable products.
In a separate filing, Asia Poly said it had acquired the 15% stake in May 2021 for investment purposes, and the stake's disposal now "serves as a viable opportunity for the company to realise its investment in CWT"
Asia Poly, which is engaged in the manufacturing of cast acrylic sheet and generation of renewable energy, expects to derive a pro forma disposal gain of about RM4.81 million from the disposal of the CWT stake.
The deal is deemed a related party transaction, as Ta Win's non-independent non-executive chairman and major shareholder Datuk Yeo Boon Leong is also the executive chairman and major shareholder of Asia Poly.
Shares in Ta Win closed half a sen or 10% higher at 5.5 sen, bringing the company a market capitalisation of RM172.94 million.
Asia Poly also rose half a sen or 4.76% 11 sen, valuing the company at RM105.44 million.
Source: TheEdge - 24 Mar 2023
