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12 FEBRUARY 2022 AL CIRCLE

Mestron Holdings to purchase 10% of Winstar Aluminium Manufacturing Sdn Bhd's share capital

EDITED BY : SARNALI CHAKRABORTY 2MINS READ

On Friday, February 11, Mestron Holdings Bhd (MHB) signed a share sale and purchase agreement (SSPA) with Chua Nyok Chong (CNC) and Chua Boon Hong (CBH) for RM6 million to purchase 806,000 ordinary shares, or 10% of Winstar Aluminium Manufacturing Sdn Bhd's share capital.

Mestron Holdings to purchase 10% of Winstar Aluminium Manufacturing Sdn Bhd's share capital

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CNC has given MHB a call option to purchase additional 20% of Winstar Aluminium in two tranches for RM12 million within 365 days from and including the date of the SSPA, according to an exchange filing today.

Mestron managing director Por Teong Eng stated that the synergistic acquisition will help the firm to expand its offering of value-added services for current and future clients.

"We know it is vital to enhance our product and service offerings to our customers, so this acquisition will put us in a stronger position to meet our customers' needs,” said Por Teong Eng.

The company will be able to directly acquire the essential aluminium parts for its solar panel business as a result of the purchase. As a result, expenses are reduced and the process of obtaining essential aluminium components is sped up.

Por said that expanding the investment over the next year is a strategic option for the corporation because it would not need a cash outflow right once.

"This one year period will provide us with the visibility on the management of WAMSB and ensure the synergies can be unlocked before increasing our stake in the company. Given the rising inflation environment, it's vital for the management to maintain prudence in the management of our cash flow," added Por Teong Eng.

MHB wanted to set Winstar Aluminium on a fast track expansion in the long run, according to Teong Eng, by utilising strategic synergies.

Incorporated in 2022, Winstar Aluminium is a private corporation largely concerned in producing, fabricating, processing and selling aluminium, metal and alloy.

Invitation to participate in EXPO

This fits with MHB's current business to revolutionise traditional lighting in unison with consumers' rising demands towards modernity and urban instinct.


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EDITED BY : SARNALI CHAKRABORTY 2MINS READ

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