Pentamaster technicians working on test equipment to be used in the automotive and semiconductor industries
KUALA LUMPUR: Pentamaster Corp Bhd
, which seeks to list its automated solution business in Hong Kong held under holding company Pentamaster International Ltd (PIL), is selling a 7.4% stake in PIL to GEMS Opportunities Ltd Partnership for RM25.5mil.
In a filing with Bursa Malaysia, Pentamaster said it stood to gain RM19.08mil from selling the equity interest in newly-incorporated PIL to GEMS, a Singapore-based private equity fund.
Pentamaster had on Monday signed agreements to transfer its entire equity interest in three wholly-owned subsidiaries involved in the automated solution business to PIL and, afterwards, to sell 7.4% equity interest in PIL to GEMS for RM25.5mil in cash.
It said the internal reorganisation would lead to a more efficient group structure separating PCB’s existing automated solution business and its other smart control solution system business.
Besides for raising funds, Pentamaster said its proposed disposal of PIL shares to GEMS would broaden PIL’s shareholder base by exposing it to international institutional investors.
It added that GEMS’ positioning as strategic investor of PIL, coupled with fund manager GEMS Capital Pte Ltd’s extensive investment experience and network, would add value to the proposed listing.
On the use of the RM25.5mil proceeds, Pentamaster said the bulk - RM15mil - would go towards paying the listing expenses while RM7.5mil would be for repaying bank borrowings.
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