Posted by kc02245 > 2020-09-07 21:40 | Report Abuse
To all shareholders of ATS,
We refer to the Circular which was despatched to the Shareholders on 28 August 2020. We wish to notify the Shareholders of the insertion of the following new section under Section 2.1 of the Circular to include information pertaining to the Acquisition of the Chemor Property (as defined herein), being a material development subsequent to the printing of the Circular, as follows:-
2.1.1 Manufacturing locations for the Gloves Business
The Group’s proposed venture into the Gloves Business entails the acquisition, installation and commission of up to 20 glove-dipping lines in stages over the course of 36 months. As a start, under the Minimum Scenario, the Group intends to commission 1 single former glove-dipping line and 5 double former glove-dipping lines; under the Maximum Scenario, the Group intends to commission 1 single former glove-dipping line and 7 double former glove-dipping lines.
To accommodate the glove-dipping lines, the Group has entered into the following agreements:-
(i) the Company had on 26 June 2020 announced the proposed acquisition by AGESB of the entire equity interest in PGSB from the PGSB Vendors (“Acquisition of PGSB”).
===== SUNGAI PETANI PLANT =====
Subject to completion of the Acquisition of PGSB, the Group intends to install up to 6 glove-dipping lines at PGSB’s existing manufacturing facilities in Sungai Petani, Kedah (“PGSB Facility”), which is capable of housing up to 9 glove-dipping lines. Currently, PGSB’s existing manufacturing facilities houses 3 single former glove-dipping lines which are used for the manufacture of work gloves.
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On 30 July 2020, the Company announced that AGESB and the PGSB Vendors have mutually agreed to extend the period to fulfil the conditions precedent as stated in the share sale agreement for the Acquisition of PGSB for a period of 2 months from 27 July 2020 as the parties have yet to obtain / fulfil the said conditions precedent. As at the date of this Addendum, the Group is in the midst of performing the necessary due diligence exercises on PGSB; and
(ii) the Company had on 27 August 2020 announced that AGESB had entered into a sale and purchase Agreement (“SPA”) with Ripcol Industries Sdn. Bhd. (“RISB” or the “Vendor”) for the purchase of 2 adjoining parcels of leasehold industrial lands, together with industrial premises (“Chemor Property”) (“Acquisition of Chemor Property”), for a total cash consideration of RM10,300,000 (“Purchase Price”), upon the terms and conditions as stipulated in the SPA. The Purchase Consideration was arrived at on a “willing buyer-willing seller” basis after taking into consideration the market value as appraised by Rahim & Co International Sdn. Bhd, being the independent registered valuer appointed by AGESB (“Independent Valuer”).
The Purchase Price is expected to be financed through the following sources of funds:-
Bank borrowings RM 2,060,000
Internally generated funds and/or funds arising from exercise of
Convertible Securities
RM 8,240,000
RM10,300,000
===== CHEMOR PLANT =====
The Group intends to install and commission its glove-dipping lines at the Chemor Property which is able to house up to 12 single former and/or double former glovedipping lines. For information, double former glove-dipping lines are generally taller in height as compared to single former glove-dipping lines but are approximately the same in width and length. As at the date of this Addendum, the Acquisition of Chemor Property is pending completion.
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