DGAP-News: Balda sells site in Malaysia under a management buyout


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


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.’


Frank Elsner

Frank Elsner Kommunikation für Unternehmen GmbH

Tel.: +49 – 54 04 – 91 92 0

Fax: +49 – 54 04 – 91 92 29


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.



End of Corporate News


26.04.2013 Dissemination of a Corporate News, transmitted by DGAP – a

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Language: English

Company: Balda AG

Bergkirchener Str. 228

32549 Bad Oeynhausen


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