It has acquired a 40% stake in British Virgin Islands-based Rockhill Resources Ltd (RHR) for US$2 million (RM7.4 million), a deal which marks its diversification into coal mining.
Jotech, which fabricates metal stamped parts and components for electrical and electronic appliances, had entered into a conditional sale and purchase agreement with Concord Alliance (HK) Ltd to acquire the stake in RHR.
The proposed acquisition is expected to diversify the future income stream of the Jotech Group of companies to include exploration and extraction of coal mining.
With the guaranteed profit as part of the terms of the proposed acquisition, the group would be assured of future earnings contribution from RHR.
Based on Jotech's intended 40% stake in RHR, Jotech is expected to fork out another US$400,000 to finance RHR's capital expenditure, and working capital needs. The proposed acquisition is expected to be completed in the second quarter of 2009.
6 hours ago
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