PETALING JAYA: Press Metal Aluminium Holdings Bhd’s proposed RM464.95 million acquisition of a further 35.6% stake in PMB Technology Bhd (PMBT) has been deemed fair and reasonable by independent adviser UOB Kay Hian (M) Sdn Bhd.
UOB Kay Hian recommended that Press Metal’s non-interested shareholders vote in favour of the deal, which will raise its stake in PMBT from 23.2% to 58.8% and give it control of the company.
Press Metal plans to spend about RM600 million to repurpose PMBT’s operations towards silicon-aluminium alloy smelting. The exercise is targeted for completion by Q1’27, with PMBT expected to contribute positively to group earnings from Q2’27.
The adviser said the deal would increase Press Metal’s gearing to 0.43 times from 0.37 times following the consolidation of PMBT’s borrowings, but the level remains healthy and manageable.