Ta Win Holdings Bhd | Ta Win to Buy 51% Stake in Rod and Wire Products Manufacturer
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KUALA LUMPUR (July 9): Copper products maker Ta Win Holdings Bhd has proposed the acquisition of a majority stake in Sin Line Tek Electronic Co Sdn Bhd.


The group said the acquisition would enable it to add value to its copper rod and wire products, and further extend its existing product range into the downstream of the copper rod and wire supply chain.


Upon completion of this acquisition, Sin Line Tek will become a 51%-owned subsidiary of Ta Win, the group added in a filing with the stock exchange.


The deal involves the acquisition of 1.75 million shares or 30% of the enlarged issued share capital of Sin Line Tek for RM12.2 million, to be satisfied via a combination of new Ta Win shares and cash.


The exercise also includes the subscription of 1.22 million subscription shares or 21% of the enlarged issued share capital of Sin Line Tek, for RM8.5 million.


Ta Win said the acquisition would provide an additional income stream for the group as Sin Line Tek has guaranteed a net profit of RM2.6 million and RM3 million for 2021 and 2022 respectively.


Ta Win executive director Tan Poo Chuan said in a statement that given the increasing reliance on electrical and electronics (E&E) products among consumers and across various sectors, the group is well-poised to see sustained growth in demand for its cable, wire harness and AC & DC power cords over the long-term.


“Building on this, the proposed acquisition of Sin Line Tek is part of our strategic thrust to strengthen our core business by leveraging on viable prospects in the E&E industry, which is a key economic sector for the nation, contributing approximately 4.8% of Malaysia’s GDP in 2019.


“As demand for E&E products continues to grow locally and globally, we view this as a synergistic opportunity for the group to integrate our existing business in the manufacturing of copper products, with the downstream business operations of Sin Line Tek in the manufacturing and supply of cable, wire harness and AC & DC power cords for the E&E industry,” Tan added.


Ta Win shares were last traded at 15 sen, valuing the group at RM53.61 million.


Read On: The Edge Market

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