KUALA LUMPUR, Oct 2 (Bernama) -- RHB Investment Bank Berhad today announced that Instacom Group Berhad (“Instacom”), has acquired Neata Aluminium (Malaysia) Sdn Bhd in a strategic development aimed at diversifying its business base and developing new revenue streams for the Group. This strategic development shall also further solidify Instacom’s already strong financial fundamentals.
 
In a filing to Bursa Malaysia this evening, Instacom has proposed to acquire 1.4 million ordinary shares of RM1.00 each in Neata Aluminium (Malaysia) Sdn Bhdfor RM58.8 million which will be fully satisfied by the issuance of 309,473,684 new ordinary shares of RM0.10 each in Instacom.
 
This means that shareholders would not be burdened with any capital call. Instead shareholders can also look forward to the proposed bonus issue of Warrant C (more later).
 
Neata, which is principally involved in the design and fabrication of aluminium structures, is today a ‘one-stop’ centre for the supply, design, fabrication and installation of aluminium structures for a wide range of property development projects such as Nadayu28 Bandar Sunway together with U-Thant Residence andAmpersand Condominium in Kuala Lumpur.
 
Meanwhile, Neata’s subsidiary company, Vivocom Enterprise Sdn Bhd, is principally involved in civil engineering and construction. Vivocom’s range of services comprises, amongst others, reinforced concrete and steel structural works, architectural works, interior decoration, civil and infrastructure works.
 
As part of the acquisition agreement, the vendors of the Neata-Vivocom group have provided a profit guarantee to Instacom of an aggregate of not less than RM34 million for the two financial years ending 31 December 2015 and 31 December 2016, being RM17 million per year respectively.
 
Instacom is confident that the acquisition will be beneficial to the Group given the strong track record of Neata-Vivocom with its current order book presently at close to half a billion ringgit and growing, and with another over a billion ringgit in its pipeline. The company targets to secure at least RM500m in the foreseeable future and by the end of 2015.
 
“Upon completion of this corporate exercise, the Instacom Group will have strategically diversified into new areas and viable businesses. This exercise forms part of a longer term plan to strategically position Instacom on an even more solid and stable footing in terms of having sustainable and recurring revenue growth,” said Instacom CEO Anne Kung.
 
“With this acquisition, there will be another stream of income, thus diversifying the earnings base, which is expected to enhance shareholders’ value,” she added.
 
RHB Investment Bank Berhad also announced that Instacom is embarking on a Proposed Bonus Issue of Warrants involves an issuance of up to 210,676,278 Warrants C on the basis of one (1) free Warrant C for every five (5) existing Instacom Shares.
 
“The bonus issue is intended to reward our existing shareholders in line with the company’s robust growth and our strong balance sheet,” said Kung, adding that the warrants, when listed, also present an opportunity for more investors to gain exposure to Instacom at a lower entry point to the mother share.
 
“It’s going to be an exciting journey ahead for Instacom and we would like to thank all our valued shareholders for their loyalty and patience as we embark on our long term journey of sustainable growth and maximising shareholders value,” she added.
 
ISSUED BY INSTACOM GROUP BERHAD
 
For more media queries, please contact :
Name : Ms Magdalene Leong
Email : info@instacom.com.my
 
--BERNAMA