Malaysia’s Top Glove Corp Bhd has entered into a memorandum of understanding to negotiate the terms for the acquisition of Adventa ‘s unit Aspion Sdn Bhd.

According to the term sheet, the purchase consideration will be based on a profit after tax (PAT) of 80 million ringgit for Aspion in fiscal year 2018, a guarantee by Adventa to reimburse Top Glove for any shortall in the PAT, and a contemplated price-to-earnings multiple of 16 to 18 times the 2018 target PAT.

The transaction will be satisfied via cash and shares, with the issuance of new shares not exceeding 10 per cent of the value of the acquisition.

Following the acquisition, the current management team of Aspion is expected to stay on with the company.

The exclusivity period for the negotiations will expire on Jan 15, 2018.

Top Glove said the proposed acquisition of surgical glove maker Aspion is grow the group’s business via a products extension merger.

It will help to establish the group as the largest surgical glove exporter in Malaysia, develop its presence in the surgical glove market as well as boost gross profit margins. – The Star

Donaco seeks to oust Thai partner from Star floor

Asian casino operator Donaco International will seek an injunction through the Cambodian courts against a former Thai business partner that has continued to operate a gaming floor at the Star Paradise border casino in Poipet, a property that sits adjacent to the company’s flagship Star Vegas Resort, gaming site GGR Asia reported on Thursday.

The report said the firm will also initiate commercial arbitration hearings in Singapore. In mid- September, the casino firm issued a “cease and desist” letter to the Thai business partner who has still yet to be named. Donaco completed the purchase of Star Vegas from the Thai partner in July 2015 for $360 million. |– The Phnom Penh Post

Singapore’s factory output powers ahead in October

Factory production in Singapore delivered another impressive performance for the month of October, shrugging off a steep decline in biomedical output.

The Economic Development Board yesterday reported that the overall manufacturing output grew 14.6 per cent in October, slightly missing economist estimates of 16 per cent. September’s industrial output was revised lower to 14.4 per cent, from an earlier estimate of 14.6 per cent.

But if the traditionally volatile biomedical sector was excluded, growth would have been 25.8 per cent.

On a seasonally adjusted month-on-month basis, factory output went up by 0.7 per cent in October. With biomedical manufacturing stripped out, output grew 6.8 per cent.

Manufacturing growth continued to be powered by electronics, which grew 45.1 per cent last month. This was again driven by the semiconductors segment which posted robust growth of 64.6 per cent.

Precision engineering – a beneficiary of the rise in global electronics demand – grew 23.6 per cent year on year.

The chemicals and general manufacturing clusters also turned in decent report cards, with growth of 15 per cent and 15.5 per cent respectively. – The Straits Times

JV in Laos for power transmission line

Laos’ TBEA Hengyang Transformer Co Ltd and Electricite du Laos (EDL) have cooperated to develop more electricity transmission lines in the capital in response to higher consumer demand.

TBEA and EDL held a groundbreaking ceremony earlier this week to commence construction of the Nahai-Dongphosy 115/22 kV transmission line and an electricity substation in Vientiane, with the project funded by a US$76 million loan from Exim Bank of China.

Deputy Director of EDL Duangsy Pharayok said the project was part of the government’s electricity transmission development plans up to 2030.

Duangsy explained the project was located in southern Vientiane and would play an important role in distributing electricity to the two districts of Haixaifong and Xaysettha which host industrial zones.

Construction of the 10 km Nahai-Dongphosy 115/22 kV transmission line will connect the new Nahai substation with the existing facility at Dongphosy. – Vientiane Times