Investor Relations - News
Acquisition Of 19.9% Equity Interest In RCR Tomlinson Limited ("RCR")
The Board of Directors of Metalock (Singapore) Limited ("Metalock") hereby announce that, pursuant to an on-market purchase on the Australian Stock Exchange by stockbroking firm, D J Carmichael & Co, Dynamic Turbocharger Services (Australia) Pty Ltd ("Dynamic"), a wholly-owned subsidiary of Metalock, acquired 8,850,330 ordinary shares in the capital of RCR at A$0.30 per share for a total consideration of A$2,655,099 on 18 June 2002. The price of A$0.30 per share was arrived at on a "willing buyer and willing seller" basis.
RCR was incorporated in Australia and is listed on the Australian Stock Exchange. Its issued and paid up share capital based on its latest audited account as at 31 December 2001 is A$17,269,000. The acquisition therefore represents 19.9% of the total issued and paid up share capital of RCR. RCR's shares were last traded on 18 June 2002 at A$0.30. The net tangible assets backing per share as at 31 December 2001 was approximately A$0.43.
RCR is a leader in Western Australia in multi-discipline engineering, with operations consolidated in the Welspool, Bayswater and Burnbury areas of Western Australia. Its Tomlinson Boilers Division has operations in all the Australian capital cities.
The Directors believe that RCR's activities are complementary to Metalock Group's current engineering services and see synergistic benefits for both parties in the offshore oil and gas industry and in the marketing of Heat Transfer products in South East Asia.
Under the terms of the acquisition, Metalock Group will be entitled to appoint two nominees to the Board of RCR.
The acquisition had been paid for in cash and funded by Metalock Group's internal resources.
The transaction is not expected to have any material impact on Metalock Group's earnings and net tangible assets per share for the current financial year.
None of the directors or substantial shareholders of Metalock has any interest, directly or indirectly, in the acquisition.