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Tai Sin Electric proposes acquisition of two companies for total of US$12.3 mil

Nicole Lim
Nicole Lim • 2 min read
Tai Sin Electric proposes acquisition of two companies for total of US$12.3 mil
The proposed acquisition of the two companies which are incorporated in Thailand and the Philippines allows the group to capitalize on the growth of the green energy sector in Southeast Asia.
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Tai Sin Electric is proposing to purchase the entire issue share capital of BayWa r.e. Solar Systems Co and BayWa r.e. Solar Systems Corporation, which are incorporated in Thailand and the Philippines respectively.

The consideration amount for the sale shares is US$12.3 million, or about $15.7 million. This is made up of US$5.7 million in sale shares amount; US$4.2 million which is an amount of intra-group loan for the Thai target; and US$2.5 million which is an amount of intra-group loan for the Philippines target.

The consideration also includes a leakage adjustment amount in US dollars, which is an amount to be agreed between Tai Sin and the seller, inter alia any dividend or distribution or other return of capital declared.

The completion of the sale is expected to take place on Nov 3, and will be funded by internal sources of Tai Sin and by way of external financing from bank loans.

Tai Sin says that the proposed acquisitions are in line with its strategy to expand into sustainable and future-oriented businesses, and will enable the group to capitalize on the growth potential of the green energy sector in Southeast Asia.

Shares in Tai Sin Electric closed 1 cent lower or 1.709% down at 57.5 cents on Sept 18.

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