SWS Capital Berhad cancelled the acquisition of Ee Jia Housewares (M) Sdn. Bhd. from Tan Sri Dato’ Seri Dr. Tan King Tai @ Tan Khoon Hai, Teoh Han Chuan, Heng Sew Hua, Ooi Chen Hoon and Tan Soon Ping.
April 26, 2020
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SWS Capital Berhad (KLSE:SWSCAP) entered into a conditional share purchase agreement to acquire Ee Jia Housewares (M) Sdn. Bhd. from Tan Sri Dato’ Seri Dr. Tan King Tai @ Tan Khoon Hai, Teoh Han Chuan, Heng Sew Hua, Ooi Chen Hoon and Tan Soon Ping from MYR 56.3 million on January 28, 2019. Under the terms of the transaction, SWS Capital Berhad will pay MYR 20 million by cash and the rest by allotment and issuance of 55 million new shares. Pre-acquisition, Tan Sri Dato’ Seri Dr. Tan King Tai @ Tan Khoon Hai holds 8.57% stake, Teoh Han Chuan holds 25.24% stake, Heng Sew Hua holds 16.19% stake, Ooi Chen Hoon holds 32.86% stake and Tan Soon Ping holds 17.14% stake in Ee Jia Housewares (M) Sdn. Bhd. The cash consideration will be funded via proceeds to be raised from the proposed rights issue of irredeemable convertible preference shares amounting to MYR 38.3 million. As on February 28, 2019, the Board is of the opinion that the proposed rights issue is the most suitable and expedient form of fund raising for SWS Capital Berhad. Post completion, Ee Jia Housewares (M) Sdn. Bhd. will become a wholly owned subsidiary of SWS Capital Berhad.
The transaction represents a price to earnings ratio of 11.5 times. Ee Jia Housewares had total assets of MYR 61.6 million, revenues of MYR 43.4 million and profit after tax of MYR 4.9 million for the year ended December 31, 2018. Ooi Chen Hoon shall continue his employment as the Managing Director of Ee Jia Group for up to 36 months from completion. The deal is subject to SWS conducting, and being satisfied with the results of, financial, legal, taxation and commercial investigations into Ee Jia and its subsidiaries, the approval of Board and shareholders of SWS Capital Berhad, all necessary third-party consents to change of control, the licences, authorisations, orders, grants, confirmations, permissions, registrations, consents, and other approvals necessary or desirable for or in respect of the acquisition having been obtained from appropriate governments or other regulatory bodies, completion of the proposed rights issue. On May 16, 2019, the transaction was approved by the Bursa Securities. On July 5, 2019, the transaction was approved by the Board of SWS Capital Berhad. As of July 29, 2019, the transaction was approved by the shareholders of SWS Capital Berhad. The transaction is expected to be completed by second quarter of 2019. On November 27, 2019, SWS Capital and the vendors agreed to further extend the Long Stop Date under the agreement by 4 months from December 26, 2019 to April 25, 2020. The transaction will not will not have any effect on the earnings per share of SWS. Tan Kok Tiam of Inter-Pacific Securities Sdn Bhd acted as financial advisor to SWS Capital Berhad. As of March 21, 2019, SWS Capital appointed a due diligence legal advisor for the transaction. M & A SECURITIES Sdn. Bhd. acted as financial advisor for SWS Capital Berhad.
SWS Capital Berhad (KLSE:SWSCAP) cancelled the acquisition of Ee Jia Housewares (M) Sdn. Bhd. from Tan Sri Dato’ Seri Dr. Tan King Tai @ Tan Khoon Hai, Teoh Han Chuan, Heng Sew Hua, Ooi Chen Hoon and Tan Soon Ping on April 27, 2020.
SWS Capital Berhad is an investment holding company. Its segments include investment holding, manufacturing of furniture, and manufacturing of plastic wares. The investment holding segment is engaged in investment holding and provision of management services. The manufacturing of furniture segment is engaged in the business of design, manufacture, and sales of wooden furniture products. The manufacturing of plastic wares segment is a manufacturer and trader of plastic wares, utensils, and goods. Its wood furniture division is engaged in manufacturing and sale of dining furniture, occasional set, living room furniture, and bedroom sets. It provides wood veneer lamination services to furniture manufacturers. Its plastic division is engaged in manufacturing, trading, and distribution of plasticwares, utensils, and goods. It markets and distributes plastic household and industrial products. Its geographical segment Asia Pacific, Australia, Europe, Malaysia, Middle East, and Others.
SWS Capital Berhad cancelled the acquisition of Ee Jia Housewares (M) Sdn. Bhd. from Tan Sri Dato’ Seri Dr. Tan King Tai @ Tan Khoon Hai, Teoh Han Chuan, Heng Sew Hua, Ooi Chen Hoon and Tan Soon Ping.