Posted by Jimmy Song > 2014-04-10 08:05 | Report Abuse

DATASONIC’S PROPOSED STRATEGIC ACQUISITION KUALA LUMPUR, 9 APRIL 2014 – Datasonic Group Berhad (“DSONIC” or “the Group”) has entered into a Share Sale Agreement (“SSA”) with Formosa Prosonic Industries Berhad (“FPI”) for the acquisition of 24,861,790 ordinary shares of RM1.00 each (“Shares”) representing 99.45% of the equity interest in Asia Pacific Card & System Sdn Bhd (“APCS”) together with its wholly-owned subsidiary, Constant Ahead Sdn Bhd (“CASB”) for a total cash consideration of RM21.9 million. Upon completion of the Proposed Acquisition, APCS shall become a 99.45% subsidiary of DSONIC and CASB shall remain a wholly-owned subsidiary of APCS. Rationale for the Proposed Acquisition The proposed acquisition of APCS is expected to provide synergies to DSONIC and help the Group to achieve greater economies of scale in order to meet the demands for its polycarbonate cards. At the same time, it will also improve the Group’s financial and operational performance through effective cost control measures. In addition to the above, this proposed acquisition is in line with the Group’s long-term strategy to safeguard one of the Group’s sources of supplies and increase its competitive edge within its industry. Through this acquisition, the Group would be in a better position to protect its technological expertise, supply chain and processes in the smartcard business. The cash only purchase consideration of RM21.9 million was arrived at based on a willing-buyer willing-seller basis after taking into consideration the prospects and earnings potential of APCS. The Group targets to complete the proposed acquisition by 3rd quarter of 2014. Information on FPI, APCS and CASB FPI FPI is a public listed company incorporated in Malaysia with authorised and paid-up share capital of RM200,000,000.00 and RM123,679,133.00 respectively. The principal activities of FPI are assembly of high quality speaker systems. APCS APCS is a company incorporated in Malaysia with authorised and paid-up share capital of RM25,000,000.00 respectively. The principal activities of APCS manufacturing of electrical integrated circuit (I.C.) cards, or commonly known as smart cards and its related products. The existing majority shareholder of APCS is FPI, with a 99.45% equity stake. Upon completion of acquisition, DSONIC will own 99.45% of APCS. CASB CASB is a company incorporated in Malaysia with authorised and paid-up share capital of RM500,000.00 and RM300,000.00 respectively. CASB is currently a dormant company and a wholly-owned subsidiary of APCS.