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Advance SCT acquires 40% of N&T Engineering Enterprises for up to S$3.5m

ADVANCE SCT (ASCT) is acquiring a 40 per cent take in N&T Engineering Enterprises for up to S$3.5 million. Advance SCT is a supplier of copper-related products that is diversifying into the business of mechanical and electrical (M&E) engineering for mission-critical infrastructure (MCFI) and systems.

The firm said in a Singapore Exchange filing that N&T is a Singapore-based M&E company specialising in design, customisation, operation, installation and maintenance of MCFI and Smart City systems. Its clients are mainly government agencies, government linked companies, multinational corporations and higher learning institutions.

N&T currently owns 100 per cent of N&T Smart Engineering, which was incorporated in August last year. N&T Smart has not commenced business since its incorporation.

Upon completion of the proposed aquisition, N&T will transfer its entire stake in N&T Smart to the ASCT for S$1. N&T Smart is expected to then spearhead new growth initiatives primarily in research and experimental development, including system development and system integration relying on integrated use of Internet of Things and artificial intelligence to support smart facilities management.

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The purchase price of S$3.5 million is to be fully satisfied via issuance of new shares at $0.001 each; S$2.8 million is to be paid upfront upon deal completion while the remaining S$0.7 million is to be paid only when N&T achieves a net profit after tax (NPAT) of not less than S$1.2 million for the full year ending Feb 28, 2019, said ASCT.

N&T recorded an unaudited NPAT of approximately S$0.64 million for the six months ended Aug 31, 2018. N&T currently has an order book of about S$21.4 million (excluding materials procurement) to be delivered over the next one to two years.

The proposed acquisition is subject to shareholders’ approval at an extraordinary general meeting on Feb 12 for the proposed diversification.