Ellipsiz buys 51% of engineering solutions firm AXIS-TEC for S$3.6m

MAINBOARD-LISTED Ellipsiz has expanded its foothold in the semiconductor and electronics industry by acquiring a 51 per cent stake in local engineering solutions firm AXIS-TEC for S$3.6 million, it said on Wednesday.

The sale comprises 33,674 new shares and 60,000 vendor shares. The vendors are AXIS-TEC founder and managing director Vincent Ong Sin Liang, and shareholders Loo Geak Kin and Chung Chiew Kit.

The remaining 49 per cent equity stake in AXIS-TEC continues to be held by Mr Ong and an existing shareholder, Low Chee Wee.

AXIS-TEC is in the business of designing and manufacturing of precision engineering solutions for automation in the electronics industry. Following the completion of the investment on Wednesday, AXIS-TEC has an issued and paid-up share capital of S$1.4 million.

Based on the financial statements of AXIS-TEC for the financial year ended March 31, it had a book value and the net tangible asset value of about S$1.8 million. No independent valuation was conducted.

Following the completion of the investment, Mr Ong and Mr Low will remain as directors of AXIS-TEC. Ellipsiz will appoint three directors to the board of AXIS-TEC, as well as its board chairman.

Ellipsiz's purchase is fully satisfied by its internal resources.

Ellipsiz shares fell 1.5 Singapore cents or 3.61 per cent to S$0.40 on Wednesday before the acquisition was announced.