In a filing with Bursa Malaysia today, the group said the acquisition by NationGate System Sdn Bhd (NSY) will be financed from NSY’s internal funds and/or bank loans.
The group said the 17,501 square metre (188,385 square feet) land plus buildings erected on it are located in the Prai Industrial Estate.
The filing said the acquisition serves as a strategic investment aimed at expanding production capabilities and aligns with NationGate’s and its subsidiaries’ long-term growth strategy.
Furthermore, the establishment of the manufacturing facility will have a significant impact on the local socio-economic landscape, through the generation of employment opportunities in the surrounding regions.
Barring any unforeseen circumstances, the acquisition is expected to be completed by end of the second quarter of the financial year ending Dec 31, 2024 (Q2 2024).
NationGate is an electronic manufacturing services (EMS) provider while NSY is principally involved in the business of assembly and testing of semiconductor devices.
Unsuccessful mandatory takeover
NationGate was in the news recently when its managing director and largest shareholder Ooi Eng Leong’s mandatory takeover offer for the remaining 49.41% stake in Ewein Bhd drew lacklustre response from shareholders, with only 1,099 shares accepted during the exercise.
On June 14, Ooi revealed his intention to purchase the entire remaining stake of 149.01 million shares, equivalent to 49.41% of Ewein, not currently held by him and the two persons acting in concert (PACs) for a total sum of RM89.41 million.
The unconditional mandatory takeover offer was destined to be unsuccessful due to the offer price of 60 sen per share being 14.9% below Ewein’s closing price of 70.5 sen on June 14, the day when the offer was officially made. Its share price has appreciated substantially since then.
Ewein is a precision sheet metal moulds, tools, dies and fabricated parts manufacturer, used in electrical and electronics equipment. The group has also diversified into property development in recent years.
At the close of trade today, NationGate’s share price was down 3 sen or 1.94% to RM1.52, giving the company a market capitalisation of RM 3.15 billion.