Datapulse unveils S$3.5m buy-out deal for haircare manufacturer

MAINBOARD-LISTED Datapulse Technology said after Tuesday's trading hours that it has entered into a deal to buy out Malaysia-incorporated hair care manufacturing business, Wayco Manufacturing, from Way Company Pte Ltd for S$3.5 million in cash.

Datapulse said that the consideration has been agreed upon between the two parties after taking into account the six-month unaudited net profit and unaudited net tangible asset (NTA) value of Wayco.

The company also added that its chief executive Kee Swee Ann was the former general manager of Way Company from 2008 to 2010 and was involved in the management of Wayco Manufacturing.

Wayco posted RM160,632 (S$53,201) in unaudited net profit for the six months ended June 30 and its unaudited NTA value was over RM7.63 million as at June 30.

The Malaysia-incorporated company which also manufactures cosmetics and other homecare chemical products now owns three properties - two in Johor Bahru and one in Puchong, Selangor. These properties host its production facilities.

The board of Datapulse is of the view that with this deal, the company can acquire a profitable business and diversify its core business into the beauty or wellness products or industry.

The proposed acquisition is subject to several conditions including due diligence on Wayco Manufacturing, regulatory approval from the Singapore Exchange and shareholders' approval at a general meeting.

Datapulse added in a separate announcement after disclosing the proposed acquisition that its new board is of the view that the overall prospects of its existing media storage manufacturing business remains challenging.

The company also said that its original plan to relocate its manufacturing activities from Tai Seng Drive to Toa Payoh has changed following the termination of the option to purchase the Toa Payoh property.

In July, it has granted an option for the sale of the Tai Seng Drive property. The completion of this proposed disposal is expected to be completed in January 2018, though progress on this front has been held back at the request of the buyer.