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Asti-owned Catalist unit to buy a group of semiconductor companies for S$10m

ASTI Holdings-owned Advanced Systems Automation plans to buy a group of companies in the semiconductor sector for S$10 million, the Catalist-listed unit said on Monday.

It entered on Sunday into a sale and purchase agreement with one Seah Chong Hoe for Yumei Technologies Sdn Bhd, its asset manager Yumei Reit Sdn Bhd, and metal product maker Pioneer Venture Pte Ltd.

Mr Seah, the vendor, has undertaken that pre-tax profits of the target companies for financial year 2018 and 2019 is at least S$3 million altogether, according to Advanced Systems Automation, which noted that the acquisition is expected to be earnings-accretive.

The target companies' book value and net tangible asset value stood at S$4.07 million as at Feb 28.

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Advanced Systems Automation executive chairman and chief executive, Michael Loh, said in a statement that these companies are expected to "bring in new skill sets" in die-casting and plastic injection, "enabling us to offer a more comprehensive value proposition to a broader customer base across a wider region".

"Their business presence in Malacca is also complementary to our existing business locations," he added.

The completion of the deal hinges upon certain conditions precedent, which are to be satisfied within six months from the date of entering into the sale and purchase agreement.

Meanwhile, mainboard-listed parent Asti said on April 2 that is selling its core semiconductor technology and instrument businesses - collectively known as the STI Group - to Shanghai Pudong Science and Technology Investment for S$90 million in cash and another S$38 million in dividends.

Asti entered into the sale and purchase agreement for that deal on March 30.