Acquisition of 40.0% of Unigel (UK) Limited
Unigel Group plc
(the "Group" or the "Company")
Acquisition of 40.0% of Unigel (UK) Limited
Unigel Group plc (AQSE: UNX), the manufacturer and supplier of materials used in the manufacture of telecommunication fibre optic cables announces that its wholly owned subsidiary Unigel Technologies Limited ("Unigel Technologies"), has entered into a share purchase agreement ("SPA") with Unigel Compounds Sdn Bhd ("Seller") to acquire the Seller's 40% shareholding in Unigel (UK) Limited ("Unigel") for total consideration of £1.3 million (the "Acquisition").
The Company currently owns 60% of Unigel through its wholly owned subsidiary Unigel Technologies and the Acquisition will increase that shareholding to 100%. The Acquisition is conditional on (i) the execution and completion of a deed of termination terminating a contract manufacturing agreement between the Seller and Unigel, (ii) the approval of the Acquisition by the shareholder of the Seller, (iii) the approval of the Acquisition by the shareholders of Hextar Capital Berhad (formally known as Opcom Holdings Berhad), being the holding company of the Seller, (iv) the execution by the Seller and Unigel Limited (a company incorporated in Hong Kong) of a share purchase agreement relating to the purchase by Unigel Limited of 40% of the share capital of Unigel IP Ltd, and that share purchase agreement becoming unconditional in all respects, and (v) payment of the purchase price instalments as set out below.
The Acquisition is being funded from the Company's existing cash resources payable in instalments as follows:
· £130,000 by 31 January 2024;
· £260,000 by 31 March 2024; and
· £910,000 by 31 May 2024.
As part of the Acquisition, Mohamed Sharil bin Mohamed Tarmizi and Magnus Kreuger will resign as directors of Unigel and Magnus Kreuger will also resign as a director of Unigel Inc.
The Acquisition consolidates ownership control of Unigel to 100% within the Group, to support the Company's growth strategy whilst simplifying the Group's corporate structure.
For the year ended 31 December 2022, Unigel had revenue of approximately £15.2 million and made a profit of approximately £0.4 million.
Eric Chhoa, Chief Executive Officer, commented: "Bringing 100 percent of Unigel under the Group is a milestone for us. It will enable Unigel to focus on improving its cost structure, market reach and bring flexibility for potential diversification in the future whilst simplifying the Group's corporate structure."
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
Enquiries:
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Unigel Group plc |
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Eric Chhoa |
+81 80 6929 3688
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Gary Revel-Chion
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+44 (0) 1273 612 122 |
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Cairn Financial Advisers LLP (AQSE Corporate Adviser)
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Jo Turner |
+44 (0) 20 7213 0880 |
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Ludovico Lazzaretti |
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Notes to Editors
Unigel Group plc is the holding company whose operating subsidiaries, Unigel (UK) Limited ("Unigel") and Unitape Limited ("Unitape") manufacture and distribute materials used in the manufacture of telecommunication fibre optic cables.
Unigel formulates, manufactures, and markets thixotropic gels primarily to the fibre optic cable industry. In addition, it also makes specialty gel products for the construction, green energy, and high voltage transmission apparatus markets.
Unitape is one of the largest domestic manufacturers and suppliers of laminated steel tapes to the fibre optic cable industry in North America.
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