Published: Wednesday June 27, 2012 MYT 6:09:00 PM
Boustead buys LTAT's 97% stake in Johan Ceramics
By Joseph Chin
Boustead said on Wednesday it would launch a take-over offer for the remaining shares not owned, since it would hold more than 50% equity interest in Johan Ceramics.
"The proposed acquisition of Johan Ceramics is part of Boustead Holdings' strategic intent to expand the range of building materials products within its building materials division," it said.
The corporate exercise would enable it to group the business under Boustead Building Materials Sdn Bhd (BBM) and reorganise the subsidiaries involved in the building materials sectors.
Boustead said BBM could benefit from the synergies to be derived from the businesses in the terms of cost savings achieved from better economies of scale in view of Johan Ceramics' complementary nature of business.
It envisaged the proposed acquisition to provide BBM with an additional source of income stream in the ceramics tiles business.
It said the purchase price of RM28.86mil or 35 sen per share was based on Johan Ceramics' net assets of RM20.80mil or 25 sen per share as at Dec 31, 2011 and also the future earnings potential.