The vendors also owns an 80% stake in Profoto Malaysia, a company incorporated in Malaysia providing similar services to PDS. The remaining 20% stake is held by an unrelated third party.
As part of the sale and purchase agreement, the vendors will be transferring their 80% ownership in Profoto Malaysia to PDS, making Profoto Malaysia a subsidiary of PDS.
The group believes that this acquisition presents an opportunity to extend its supply chain capability and add value to its customers.
In addition, it will enable the group and PDS to tap on the synergies and to expand the business overseas by leveraging on the group’s established network of contacts in the Asia Pacific region.
This acquisition will be funded by the group’s internal resources and/or bank borrowings.
As at 12.00pm, shares in Teckwah are trading 2.56% higher at 40 cents.
