Midas gets nod to issue 733 million shares for acquisition of Huicheng Capital

MIDAS Holdings has obtained the in-principle approval from the Singapore Exchange to issue up to 733.3 million new shares as consideration for its proposed acquisition of China-based aluminium products maker Huicheng Capital.

Midas, an aluminium extruder which serves the rail industry, had said that it will issue these shares at 36 Singapore cents each, or up to S$264 million to acquire all of Huicheng Capital.

The group also announced on Thursday night its intention to adopt a share incentive scheme to increase its effectiveness and flexibility to retain, reward and motivate employees.

This will motivate key senior management and employees to strive for the firm's long-term shareholder value, "inculcating a stronger sense of identification with the long-term profitability of the company", it said.

In a separate announcement, Midas said that it has clinched contracts worth 247.7 million yuan (S$51.8 million) to supply train car components to CRRC Changchun Railway Vehicles this year. They are expected to contribute positively to the firm's financial performance for the current financial year.