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GRAND-FLO SOLUTION BERHAD (“GRAND-FLO” OR “COMPANY”) - PROPOSED ACQUISITION IN VIETNAM BY SIMAT TECHNOLOGIES PUBLIC COMPANY LIMITED (“SIMAT”), AN ASSOCIATE COMPANY OF GRAND-FLO IN THAILAND, TO ACQUIRE 40% EACH OF THE CHARTER CAPITAL OF SINO CO., LTD. (“SINO”) AND HIGH RICH TRADING & SERVICE CO., LTD. (“HIGH RICH”) FOR A TOTAL PURCHASE CONSIDERATION OF RM2,400,000.00 PAYABLE IN CASH, IN THREE (3) TRANCHES (“PROPOSED ACQUISITION”)

GRAND-FLO SOLUTION BERHAD

TypeAnnouncement
SubjectGRAND-FLO SOLUTION BERHAD (“GRAND-FLO” OR “COMPANY”)
- PROPOSED ACQUISITION IN VIETNAM BY SIMAT TECHNOLOGIES PUBLIC COMPANY LIMITED (“SIMAT”), AN ASSOCIATE COMPANY OF GRAND-FLO IN THAILAND, TO ACQUIRE 40% EACH OF THE CHARTER CAPITAL OF SINO CO., LTD. (“SINO”) AND HIGH RICH TRADING & SERVICE CO., LTD. (“HIGH RICH”) FOR A TOTAL PURCHASE CONSIDERATION OF RM2,400,000.00 PAYABLE IN CASH, IN THREE (3) TRANCHES (“PROPOSED ACQUISITION”)
Contents1. INTRODUCTION
The Board of Directors of Grand-Flo (“Board”) is pleased to announce that Grand-Flo’s associate company, Simat, has on 9 April 2008 entered into a Share Sale and Purchase Agreement to acquire 40% each of the charter capital of Sino and High Rich for a total purchase consideration of RM2,400,000.00, payable in cash, in three (3) tranches.

2. PRINCIPAL ACTIVITIES
Established under the laws of Vietnam in 1995, Sino is in the business of providing tracking solutions and High Rich specializes in the manufacturing of labels, both are market leaders in their respective industries.

Headquartered in Ho Chi Minh city, Sino has market presence in three key indo-china markets namely Vietnam, Laos and Cambodia.

3. RATIONALE FOR THE PROPOSED ACQUISITION
The Proposed Acquisition presents an opportunity for Grand-Flo to expand regionally into Vietnam and synergise with Grand-Flo’s operations. The Board believes that with the current market positioning of Sino and High Rich, coupled with the strong technical support from Grand-Flo, the acquiree companies are poised to grow at a more rapid pace. The Proposed Acquisition is expected to strengthen the presence of Grand-Flo in the regional market for its solutions, products and services and bring the Company closer to becoming a truly regional company. The Proposed Acquisition is expected to contribute positively to the profit after tax of Grand-Flo.

4. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS
None of the Directors and/or substantial shareholders of Grand-Flo and persons connected to them, insofar as the existing Directors and substantial shareholders are able to ascertain and are aware, have any interest, direct or indirect, in the Proposed Acquisition.

5. ESTIMATED TIME FRAME FOR COMPLETION
Barring any unforeseen circumstances, the Board expects the Proposed Acquisition to be completed by last quarter of 2008.


This announcement is dated 9 April 2008.


Announcement Info

Company NameGRAND-FLO SOLUTION BERHAD (MESDAQ Market) 
Stock Name GRANFLO    
Date Announced9 Apr 2008  
CategoryGeneral Announcement
Reference NoCM-080409-60011



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