Amtek minority shareholders advised to vote for sale

PETALING JAYA: The independent advisor engaged for Amtek Holdings Bhd’s proposed sale of Apparel International Sdn Bhd to Crocodile International Sdn Bhd for RM5.58mil has recommended minority shareholders of Amtek to vote in favour of the proposal at a forthcoming shareholders’ meeting.

Sierac Corporate Advisers Sdn Bhd, the independent advisor, said in a shareholders’ circular that the proposed disposal “is fair and reasonable and not detrimental to the shareholders of Amtek” after assessing and evaluating the proposal.

Apparel International has the right to retail and distribute the “Crocodile” brand of clothing and accessories as part of the licensing agreement with Crocodile International.

Sierac took into consideration that the disposal will allow Amtek to cease the non-profitable retail business of ready-made garments and accessories, which the company held as a licensee from August 2010 to January this year.

It noted that the early termination of the licence agreements may potentially reduce further losses which may be incurred by the company for the period from February 1, 2018 to March 31, 2019 while the cash proceeds from the disposal will allow it to reduce bank borrowings and fully repay creditors.

Amtek, which has been loss-making since financial year ended June 30, 2015 (FY15) to FY17, will be focusing its time and effort to regularise the company’s condition as well as submit a regularisation plan to the relevant authorities for their approval within 12 months from January 15, 2018.