MAINBOARD-LISTED Grand Venture Technology (GVT)JLB : JLB 0% on Friday (Dec 17) said it will spend S$20 million to acquire 2 companies through separate sale and purchase agreements. (see Amendment note)

The move will augment GVT's capabilities and capacity in China and Malaysia, facilitate its penetration into new aerospace and medical diagnostics, as well as accelerate growth in semiconductor and life sciences businesses.

The precision manufacturing solutions provider will pay the sellers a mix of cash and new GVT shares, which will be issued at S$1.1619 apiece, it said in a bourse filing.

The company will buy J-Dragon Tech (Suzhou) Co, a China precision engineering company, for S$12.2 million - comprising S$4.2 million cash and S$8 million through the issue of about 6.9 million new shares. These new shares represent about 2.04 per cent of the enlarged share capital of the company post-transaction.

J-Dragon, which manufactures parts, modules and tooling for the aerospace, medical and semiconductor industries, will put GVT in a good position to tap the huge market potential and positive trends in the aerospace and medical industries, initially in China.

Meanwhile, GVT will pay S$7.8 million for Johor-based precision sheet metal manufacturer Formach Asia - comprising S$6.8 million in cash and S$1 million through the issuance and allotment of 860,658 new shares. The new shares represent about 0.13 per cent of the company's enlarged share capital post-deal.

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The proposed Formach Asia deal will supplement GVT's manufacturing nodes, capacity expansion, and provide complementary capabilities for customers.

GVT chief executive Julian Ng said the Formach acquisition will also allow the company to accelerate its time to market and onboard new customers quicker.

The company expects to complete the proposed acquisitions by Q1 2022.

Shares of GVT ended Friday at S$1.20, up S$0.03 or 2.6 per cent.

Amendment note: A previous version of this story had incorrectly stated the company as a Catalist-listed company. The company transferred to the main board on Nov 30. The article has been amended to reflect this change.