Chin Well To Acquire Asia Angel For RM47.5 Million

Malaysia's largest carbon steel fastener manufacturer, Chin Well Holdings Bhd, will acquire Asia Angel Holdings Limited for RM47.5 million from two individuals. The vendors are Taiwanese Chen Yin-Liang and Malaysian Chua Wei Feng. The purchase consideration will also assume the net advances from Asia Angel's vendors of RM44.5 million, to be paid in three installments over a two-year period. In a statement, it said the funding of the acquisition would be satisfied by the issuance of 27 million new Chin Well shares at RM1.45 per share and cash payment of RM8.3 million. (Source: Bernama)

Asia Angel, a company incorporated in the British Virgin Islands, holds 40 per cent stake in Chin Well's subsidiary, Chin Well Fasteners (Vietnam) Co Ltd (CW Vietnam). Chin Well aims to acquire a bigger pie of the profits from its rapidly-growing Vietnam's operations and the acquisition would enable the company to fully consolidate profit contributions from the Vietnamese subsidiary.

Its Managing Director, Tsai Yung Chuan said the acquisition was timely and it would allow the group to enjoy full profit contributions.  "Our Vietnam operations have witnessed strong double-digit expansion rates in both revenue and profits in the past year due to rising demand for Do-It-Yourself fasteners in our target markets in Europe and the United States," he added.