11/5/2014 5:18:00 PM
NEWS BRIEFS
Report: Chin Well Buying Asia Angel
Chin Well Holdings Bhd, Malaysia’s largest carbon steel fastener manufacturer, will acquire Asia Angel Holdings Limited for RM47.5 million (US$14.2 million), Bernama reports.
Chin Well is buying Asia Angel from Chen Yin-Liang of Taiwan and Chua Wei Feng of Malaysia. Incorporated in the British Virgin Islands, Asia Angel holds 40% stake in Chin Well’s subsidiary, Chin Well Fasteners (Vietnam) Co Ltd (CW Vietnam).
The deal reportedly includes the net advances from Asia Angel’s vendors of RM44.5 million, to be paid in three installments over two years.
Chin Well will fund the acquisition by issuing 27 million new Chin Well shares at RM1.45 per share and cash payment of RM8.3 million, according to Bernama.
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.”
“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,” stated Chin Well managing director Tsai Yung Chuan.
In May, Chin Well closed its operations in Vietnam in the wake of anti-China riots. Its factory in Nhon Trach district resumed operations on May 16 “after the situation came under control.”
Deadly riots broke out in Vietnam in early May, “sparked by anger over China’s placement of an oil rig in contested waters in the South China Sea,” AFP reports.
China reportedly evacuated thousands of its nationals from Vietnam over the riots, which killed as many as four people.
Founded in 1989, Chin Well operates fastener factories in Malaysia and Vietnam. The company incorporated its Vietnam plant in 2004 and began production there in 2005. Monthly capacity for Chin Well Fasteners (Vietnam) is listed at 6,000 MT/month. ©2014 GlobalFastenerNews.com
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