International engineering corporation Pteris Global (SGX: J74) has fallen 10.7% so far, closing at $0.159 on Thursday.
Pteris is involved in the designing and building of airport logistics systems such as airport baggage handling systems, in-flight catering systems, air cargo handling systems and parcel handling systems.
At the end of last month, the company announced that it would be acquiring 100% of Shenzhen CIMC-TianDa Airport Support Limited from China International Marine Containers (Hong Kong) Limited and Shenzhen TGM Limited at S$41.3 million.
CIMC-TianDa Airport Support Limited is involved in three main business segments – airport equipment, materials handling system and automatic parking systems. The airport equipment segment, the division that currently contributes the bulk of its revenue and profits, largely consists of the manufacture and sale of passenger boarding bridges and ground support equipment.
The payment of S$41.3 million will be made through allotment and issuance of new ordinary shares of Pteris, after a share consolidation of five existing shares into one share has taken place. The post-consolidation shares will be issued at a price of S$0.65; the price of the shares that will be issued on a pre-consolidated basis would be S$0.13 each. =
The acquisition has to be agreed by shareholders at an extraordinary general meeting (EGM) that will be convened. Details for EGM would be released in due course.
In its third quarter of 2013, it made a loss of S$3.2 million as compared to S$6.9 million in the previous year.
The company is trading at 1.3 times its Financial Year 2012 revenue. It has not paid out any dividends.