ATS buys 25.6% stake in D'Nonce for RM64.5mil
KUALA LUMPUR (Bernama) -- AT Systematization Bhd (ATS) is acquiring 25.93% equity interest in packaging solutions provider D’Nonce Technology Bhd (DTB) for RM64.96 million, or 80 sen per share.
It signed an agreement today with the Singapore-based vendors, Blackstream Investments Pte Ltd and Scoria Pte Ltd, to acquire the 81.2 million shares, the industrial automation systems and machinery maker told Bursa Malaysia.
ATS said the proposed acquisition would be carried out by way of direct business transactions and/or traded through the official securities clearing and settlement method under the rules of Bursa Depository Sdn Bhd.
The DTB group is involved in a diverse range of business operations involving the supply of packaging and polymer engineering solutions, integrated supply chain services and contract manufacturing.
On the rationale of the proposed acquisition, ATS said it would be able to provide the group with an avenue to generate additional contribution via a share of profits from an associated company, mainly derived from the manufacturing activities.
"It is also expected to reap business synergy by working together between both groups of companies to complement one another’s knowledge and resources to develop new products and markets, improve distribution networks and customer reach.
"This will strengthen the businesses of ATS Group and put it in a better position to compete with its competitors in the market, it added.