DGAP-News: Balda sells site in Malaysia under a management buyout
26.04.2013
DGAP-News: Balda AG / Key word(s): Mergers & Acquisitions/Disposal
Balda sells site in Malaysia under a management buyout
26.04.2013 / 15:17
———————————————————————
Balda sells site in Malaysia under a management buyout
– Another key strategic step towards profitable growth for the Group
Bad Oeynhausen, 26 April 2013 – The Management Board of Balda AG, an
international producer of plastics products for various industrial
applications, has arranged to sell its site in Ipoh, Malaysia, under a
management buyout with the approval of the Supervisory Board. Effective
financially 31 March 2013, Blue Ocean Genius Sdn. Bhd. will acquire all
shares of the subsidiary Balda Solutions Malaysia Sdn. Bhd. (BSM). Excluded
from the sale are the land and factory building, which will remain in the
possession of the Balda Group as key assets and will be rented back to BSM.
Blue Ocean has the option of acquiring the land and building in the medium
term at their market value, taking into account the rental payments made to
that point.
Blue Ocean is majority-owned by James Lim, Managing Director of BSM. The
Ipoh site, which produces plastics products for the consumer electronics
industry and is part of the Balda Technical segment, was restructured in
2012 under his leadership.
The decision to sell the site was made after a thorough analysis of the
site’s strategic prospects. One determining factor was Balda’s policy of
focusing on applications for high-quality plastic injection molding
solutions which offer the opportunity for long-term growth and a
sustainable operating return on sales of at least 15%. In the first three
quarters of the 2012/2013 financial year (1 July 2012 to 31 March 2013),
the site has made an operating loss. From the fourth quarter of the
2012/2013 financial year, the site will have no further negative effect on
earnings. For this reason, the transaction will positively affect the
development of earnings before interest, taxes, depreciation and
amortization (EBITDA) in the current financial year.
The closing of the transaction, being subject to the granting of regulatory
approval, will result in non-cash effects on earnings in the amount of
approximately EUR -7 million. Regardless of this, Balda AG continues to
expect a clearly positive consolidated profit for the 2012/2013 financial
year.
Blue Ocean is paying a symbolic price to acquire the shares of BSM without
the land and building. Based on the contractual arrangements with the
buyer, Balda expects the transaction to result in a cash inflow of around
EUR 6 million over the next three years, primarily through rental income.
Dominik Müser, Chief Executive Officer of Balda AG: ‘The sale of the Ipoh
site is another key step towards profitable growth for the Balda Group. The
urgently needed strategic development of activities in Malaysia would have
required substantial investments in the coming years in a weak environment
for consumer electronics. Following the sale of the loss-making site, all
of our Group’s activities are now profitable. At the same time, by holding
on to the land and building, we have retained valuable assets in Malaysia.’
Contact:
Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 – 54 04 – 91 92 0
Fax: +49 – 54 04 – 91 92 29
Mail:office@elsner-kommunikation.de
About Balda
Balda is a provider of first-class solutions for demanding, high-quality
applications in the fields of medical technology, optics, the automotive
industry and other specialist industrial sectors. The Group’s Balda Medical
and Balda Technical operating divisions have operations worldwide, and the
company maintains production facilities in Germany, the USA and Malaysia.
The success of Balda, which employs more than 1,700 people, is based on the
deployment of leading-edge, cost-effective technologies, coupled with the
trust-based collaboration with customers. The Balda AG share (ISIN:
DE0005215107) is listed on the SDAX segment of Deutsche Börse.
www.balda.de
www.balda-medical.de
End of Corporate News
———————————————————————
26.04.2013 Dissemination of a Corporate News, transmitted by DGAP – a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP’s Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
———————————————————————
Language: English
Company: Balda AG
Bergkirchener Str. 228
32549 Bad Oeynhausen
Germany
Phone: +49 (0) 57 34 / 9 22-0
Fax: +49 (0) 57 34 / 9 22-2604
E-mail: info@Balda.de
Internet: www.balda.de
ISIN: DE0005215107
WKN: 521510
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
———————————————————————
208740 26.04.2013