LUSTER (5068): LUSTER INDUSTRIES BHD to buy 5.6% stake in Aimflex for RM10.3m

LUSTER (5068): LUSTER INDUSTRIES BHD to buy 5.6% stake in Aimflex for RM10.3m

KUALA LUMPUR (Jan 11): Luster Industries Bhd has said it will subscribe for 81.58 million shares or a 5.55% stake in Aimflex Bhd (formerly known as I-Stone Group Bhd), at 12.67 sen per share or a total sum of RM10.34 million.

In a filing with Bursa Malaysia, Luster said the move is expected to allow potential synergies between the plastic parts and metal parts manufacturer and Aimflex, such as sharing customer bases.

"The subscription may enable Luster's manufacturing business segment to leverage Aimflex's expertise and experience in the manufacturing and modification of automation machines and fabrication of precision parts and metal panels, to create business opportunities to promote and embrace the digital revolution in accordance to the introduction of Industry 4.0," the group said.  

Luster said the subscription will be funded by internally generated funds and/or bank borrowings.

Shares in Aimflex ended unchanged at 16 sen, giving the group a market capitalisation of RM195.86 million.

Luster, meanwhile, finished 0.5 sen or 3.45% lower at 14 sen, valuing the company at RM405 million.

http://www.theedgemarkets.com/article/luster-industries-buy-56-stake-aimflex-rm103m