Interplex Holdings (formerly: Amtek Engineering)

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#31
Amtek market cap is close to S$300 mil and equity of S$225 mil. The acquisition costs S$267 mil, I wonder how it will be paid. The first tranche of payment is US$165 mil (S$210 mil), around first half of next year...

(not vested)

Amtek to buy Interplex for S$267m to create precision engineering giant

SINGAPORE – Amtek Engineering plans to acquire United States-based Interplex Industries for as much as US$210 million (S$267 million) to create one of the world’s largest precision engineering services firms, the Singapore-listed company said yesterday.

Interplex is a global leader in the design and manufacture of miniature precision engineered solutions for customised electronic applications.

It serves industries including automotive, industrial/electrical, mobile devices, and more recently, medical original equipment manufacturers.

In the six months to November, the company generated revenue of US$182.4 million.

The enlarged entity will have total revenue of about US$1 billion annually from operations in 15 countries, where it employs 13,500 staff. The deal is expected to be completed in the first half of next year, subject to regulatory and shareholder approvals.

The precision engineering industry in Singapore generates around S$35 billion in revenue each year and is a key area in the manufacturing sector here.

Amtek currently has operations in several countries in the region including Singapore, Malaysia, Indonesia and China. By buying Interplex, it gains a foothold in the US, Mexico, Hungary and India.

Amtek Chairman and Chief Executive Daniel Yeong said: “Interplex’s miniature precision engineered solutions, blue chip customer base and global footprint are highly complementary to Amtek.”

The purchase price includes a base amount of US$165 million to be paid at the closing of the transaction, a deferred payment of US$11 million and earn-out payments of up to US$34 million that are based on the operating earnings of Interplex from fiscal 2014 to fiscal 2016.

Before the after-market announcement yesterday, Amtek shares closed up 2.9 per cent at 54 cents each. WITH CHANNEL NEWSASIA
Ref: http://www.todayonline.com/business/amte...ring-giant
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#32
it has $110,339,000 SGD cash and liquid assets.
Probably going to borrow another 150M.

OR


Issue rights Huh

is their acquisition synergistic?
I think for geographical expansion, it looks good
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#33
[Image: xJHA1Nv.png]
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#34
can you please don't cut and paste such a large image!!!
Dividend Investing and More @ InvestmentMoats.com
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#35
good move to tap blue chip customer base Big Grin
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#36
(05-03-2014, 09:55 PM)Drizzt Wrote: can you please don't cut and paste such a large image!!!

can always zoom out mah
hold down ctrl and mouse wheel up or down

anyway large image is for the benefit for people with small screen like reading from iphone or samsung phone. I hate it when people post small images on forums and i cant see anything
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#37
(06-03-2014, 12:15 AM)kayhian Wrote: good move to tap blue chip customer base Big Grin

hopefully after they merge, they can have synergistic sales channel growth
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#38
(06-03-2014, 08:21 PM)wahkao Wrote:
(05-03-2014, 09:55 PM)Drizzt Wrote: can you please don't cut and paste such a large image!!!

can always zoom out mah
hold down ctrl and mouse wheel up or down

anyway large image is for the benefit for people with small screen like reading from iphone or samsung phone. I hate it when people post small images on forums and i cant see anything

Wahkao, you can give us the link of the SGX announcements.

It saves you the trouble of taking a screenshot and uploading. It is better, more efficient and probably help us even better... Cheers!
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#39
(06-03-2014, 08:46 PM)kelvesy Wrote:
(06-03-2014, 08:21 PM)wahkao Wrote:
(05-03-2014, 09:55 PM)Drizzt Wrote: can you please don't cut and paste such a large image!!!

can always zoom out mah
hold down ctrl and mouse wheel up or down

anyway large image is for the benefit for people with small screen like reading from iphone or samsung phone. I hate it when people post small images on forums and i cant see anything

Wahkao, you can give us the link of the SGX announcements.

It saves you the trouble of taking a screenshot and uploading. It is better, more efficient and probably help us even better... Cheers!
ok
but i dont read from SGX leh. I download from shareinvestor.
I dont like the SGX interface.
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#40
Amtek was a very rojak CM before it got privatised. It was hard to understand the business drivers. I remember I was surprised that it got privatised when it was riding on waves of privatisations amongst the component makers.

Investors would do well to remember this post and get your MOS right:

(20-11-2010, 10:24 AM)tonylim Wrote: (Copies from another forum)

by starbugs » Sat Nov 20, 2010 10:03 am

Say NO to Private Equity Greed, Say NO to Amtek IPO

Amtek was one of my double-bagger previously. I just took a look at the prospectus, but I don't think I will go for it this time.

1) The company was stagnant from the time it got privatised till now. Revenue dropped from US$786m in 2008 to $638m in 2010 (Jun end). Profits more than halved from $46.1m to $21.7m. Made a loss of $12m in 2009.

2) The private equity owners paid themselves a dividend of SG 23.46c per share (about US$100m) in 2009, causing equity to half.

3) YET, the company is trying to raise up S$547mil from IPO, about the same as the takeover price of $552mil. The IPO would value Amtek at $706m to $869m, up to 57% above takeover price. Historic price-earnings ratio at IPO is 33 to 40 times.

4) The shares offered are all vendor shares, i.e. the company itself would not get a single cent
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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