PETALING JAYA: The merger exercise of Jotech Holdings Bhd, AIC Corp Bhd and AutoV Corp Bhd would allow the merged entity, Temasek Formation Bhd (TFB) to save up to RM6.6 million a year on interests.

CK>> Done, merger deal was approved by all 3 companies' shareholders in respective EGM held in pass 3 days. 

Interest savings is one of the immediate benefits to be reaped from the RM696 million merger, said AIC Corp chairman Datuk Goh Tian Chuan, who is also the owner of the special purpose vehicle, TFB.

"The merger exercise will create a single, more sizeable listed company with improved balance sheet position, financial strength and resources," he told reporters after AIC Corp's extraordinary general meeting here, yesterday.
CK>> Yes, SIZE does MATTER...

The new merged entity, he added will also allow the group to undertake research and development and larger manufacturing contracts.

CK>> What the hell is this? Will only announce when the deal is inked? You are just creating dilemma situation those shareholders. Hold or Sell?

The merger of the three companies will create five key business for the TFB group namely, automotive, medical devices, electrical and electronics, semiconductor and resource industries.

Goh said the group also have a plantation business in Sabah with over 880ha of land in the state, and has plans to grow this venture, given the right opportunity.

The proposed merger is being satisfied via the issuance of new TFB shares, and it comprised an offer of 18 sen for each Jotech share, RM1.80 for each AIC share and RM2.38 for each AutoV share. 

The future plans for the TFB group, among others is to expand its operations as an integrated manufacturing services solutions provider of metal, plastic and electronic parts, components and sub-assemblies and completed products for multinational corporations and other blue-chip international customers.
CK>> OK, got it!

Goh said having a regional footprint and close original equipment manufacturer relationships with customers here and in Japan, the US and Taiwan, will allow the TFB group to gain from the growing requirements for supply chain outsourcing.

Asked if the Eurozone crisis has affected its overseas business, he said the impact has been "manageable."