The consideration payable for this transaction is RM15.6 million ($5.2 million), which the group will satisfy wholly in cash.
Frencken Group is acquiring Penchem Technologies, a high tech company focused on the designing, developing, formulating and manufacturing of polymer materials that are primarily aimed at applications and solutions for the electrical and electronics industry and also in markets such as coatings, adhesives, as well as fillers for industries such as automotive, marine and aerospace.
In conjunction with this deal, Frencken will be purchasing 261,500 ordinary shares in the company from two individuals - Wong Kah Gin and Ng Chee Mang - representing a 50% stake in Penchem. The group has also simultaneously entered into a subscription agreement with Penchem to subscribe for 10,058 ordinary shares amounting to 1.92% of the ordinary shares of Penchem.
