DEFTECH TO BUY MOF INC STAKE IN CTRM FOR RM298.26 MLN

12 Jul 2013 11:19

KUALA LUMPUR, July 12 (Bernama) -- DRB-HICOM Bhd's wholly-owned unit, DRB-HICOM Defence Technologies Sdn Bhd (Deftech), has proposed to acquire the Minister of Finance Inc's entire 96.87 per cent equity interest in Composite Technology Research Malaysia Sdn Bhd (CTRM) for RM298.26 million.

In a filing to Bursa Malaysia today, DRB-HICOM said the group's current core business included the manufacture, supply, maintenance and marketing of land-based military vehicles.

It said the group intended to diversify its revenue stream from land-based defence business to other areas of defence which also included aerospace.

"The proposed acquisition will enable the group to leverage on the strength, capabilities and expertise of CTRM in the aerospace industry," it said.

DRB-HICOM said the acquisition will be satisfied through RM122.06 million cash consideration and RM176.2 million settlement of the entire outstanding loan owed by CTRM to the government. -- BERNAMA

MKI THs