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AnAn International unit to take majority stake in French heating system installer

A SUBSIDIARY of Mainboard-listed fuel oil trader AnAn International will take a 70 per cent stake in a French energy-systems company for 2.31 million euros (S$3.7 million), the parent company disclosed in a bourse filing on Friday night.

Dyneff SAS, a 51 per cent-owned indirect unit of AnAn, inked a deal on Sept 22 for the majority interest in SARL ANEO, which installs heating systems for private individuals.

The deal was part of the subsidiary's five-year strategic plan to invest in new businesses for more knowledge of the energy sector, and will be funded by the Dyneff Group's internal resources, said AnAn.

The seller, which is an unrelated third party, will get an earn-out of up to 280,000 euros in 2021 and 2022, if certain financial thresholds are met.

SARL ANEO reportedly turned a net profit of about 502,000 euros for the 12 months to March 31, with a book value of some 675,000 euros as at end-March.

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On a pro forma basis, the transaction would have narrowed AnAn's loss per share to 0.0592 US cent, against 0.0637 US cent, were the deal done at the start of FY2019.

Conditions precedent for the transaction include either the approval of the AnAn's shareholders or a waiver from the Singapore Exchange, but the board said that the Dyneff Group will waive these conditions.

Shares closed higher by 0.4 Singapore cent, or 13.79 per cent, to 3.3 Singapore cents, before the latest announcement.

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