MTQ's latest M&A deal is leading SEA offshore pipe player
MTQ Group CEO Kuah Boon Wee.
NextInsight file photo
MTQ Group CEO Kuah Boon Wee.NextInsight file photo
MTQ CORPORATION has been on an acquisition path ever since Mr Kuah Boon Wee became its Group CEO on 1 July 2010.
Its third deal in 3 years was inked on Tue, for the acquisition of one of Southeast Asia’s leading designers and manufacturers of pipe support and pipe suspension solutions for the oil & gas sector.
This deal follows its acquisitions of 100% of Premier Group in 2011 and 86.8% of ASX-listed Neptune Marine Services last year.
MTQ will acquire Binder Group, which has an established sales network which includes offices in Brisbane, Melbourne, Singapore as well as sales agents all over the Asia Pacific region and in the Middle East.
It also has a production facility in Perth, and holds 50% in a joint venture which operates a profitable factory in Jakarta, Indonesia.
Its third deal in 3 years was inked on Tue, for the acquisition of one of Southeast Asia’s leading designers and manufacturers of pipe support and pipe suspension solutions for the oil & gas sector.
This deal follows its acquisitions of 100% of Premier Group in 2011 and 86.8% of ASX-listed Neptune Marine Services last year.
MTQ will acquire Binder Group, which has an established sales network which includes offices in Brisbane, Melbourne, Singapore as well as sales agents all over the Asia Pacific region and in the Middle East.
It also has a production facility in Perth, and holds 50% in a joint venture which operates a profitable factory in Jakarta, Indonesia.
The acquisition will increase the scope and scale of MTQ’s core oilfield operations in the following ways:
1. Expand MTQ Group’s scope of products and services
2. Increase the number of its oilfield engineering customers
3. Enhance the Group’s efforts to develop its Indonesian market
Binder Group's cryogenic pipe shoe is used in LNG plants. Company photoMTQ will pay A$19.3 million (S$21.9 million) for 100% in Binder Group, which had net book value of about A$6.2 million (S$7.0 million) as at 30 June 2013.
Binder Group's unaudited consolidated profit after tax for July to October 2013 was about A$1.8 million (S$2.0 million).
Initially, A$14.5 million (S$16.4 million), or purchase consideration for 75% in the Binder Group, will be paid in cash, funded by MTQ’s internal resources.
Sale and purchase of the remaining 25% will be completed in stages over the next 18 months.
M&A strategy boosts shareholder value
The Group doubled its 1HFY2014 revenue year-on-year to S$159.3 million mainly due to the inclusion of the financial results of Neptune.
Neptune’s core activities are in diving, inspection, repair and maintenance, geomatics (seabed survey) and remotely operated vessel (ROV) services.
Sale and purchase of the remaining 25% will be completed in stages over the next 18 months.
M&A strategy boosts shareholder value
The Group doubled its 1HFY2014 revenue year-on-year to S$159.3 million mainly due to the inclusion of the financial results of Neptune.
Neptune’s core activities are in diving, inspection, repair and maintenance, geomatics (seabed survey) and remotely operated vessel (ROV) services.
MTQ's M&A deals, and earnings surge, have translated into better shareholder value: Last January, its stock price increased from below 80 cents to remain firmly above S$1.30 for the past 6 months. Bloomberg data
Stamford Tyres rewards customers and fans with sponsorship of LionsXII
LionsXII coach Fandi Ahmad is a national legend - and the first Singapore millionaire sportsperson. Company photo
STAMFORD TYRES has emerged as an Official Partner of homegrown football club LionsXII, which is making a bid for the Malaysia Cup 2014.
LionsXII coach Fandi Ahmad is a national legend - and the first Singapore millionaire sportsperson. Company photoSTAMFORD TYRES has emerged as an Official Partner of homegrown football club LionsXII, which is making a bid for the Malaysia Cup 2014.
Football fans can now obtain tickets from Stamford Tyres Megamarts to watch the Malaysia Super League, the Football Association Cup and the Malaysia Cup for the football season which lasts from January to November.
Stamford Tyres Vice President John Ang
Customers and fans can also look forward to:
>> Special promotions on Stamford Tyres products for customers with the latest ticket stub
>> Special appearance by key players during events organized at the Megamart outlets
>> Car decal with an intelligent tag line
>> Special parking privileges for displaying the decals
Inked on 8 Jan, the cash sponsorship deal means car users will see more of LionsXII players endorsing Stamford Tyres products in print advertisements and magazines.
“Football is Singapore’s most immersive sport and the sponsorship will nurture a community supporting local talent and products,” said Stamford Tyres Vice President John Ang, who is also the head of its Singapore retail chain.
