PETALING JAYA: Ceramic tile manufacturer Yi-Lai Bhd plans to buy over Aspen Vision All Sdn Bhd for RM550 million, through a share and cash deal which will result in a reverse takeover (RTO) of Yi-Lai.
Aspen Vision is principally involved in the provision of management services and investment holding while its subsidiaries are principally involved in property development.
In a filing with Bursa Malaysia yesterday, Yi-Lai said it has entered into a heads of agreement (HOA) with Aspen Vision Group Sdn Bhd (AVG) and Setia Batu Kawan Sdn Bhd (Setia BK) for the proposed acquisition of six million ordinary shares of RM1 each in Aspen Vision. They have 90 days to sign a definitive agreement.
Yi-Lai will pay for the acquisition through a combination of 450 million new shares in the company and RM100 million cash.
The cash portion will be funded via internally generated funds and/or bank borrowings.
The issue price of RM1 represents a premium of 22.3% over the five-day volume weighted average market price of Yi-Lai shares up to and including Feb 23, 2016, of RM0.8174 each.
In a separate filing, Yi-Lai announced a lower net profit of RM2.50 million for its fourth quarter ended Dec 31, 2015, 10.92% lower than RM2.80 million a year ago while revenue fell 13.92% to RM34.60 million from RM40.19 million a year ago.
For the financial year ended Dec 31, 2015, net profit fell 28.44% to RM9.48 million from RM13.25 million a year ago while revenue fell 15.81% to RM136.98 million from RM162.70 million a year ago.