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- Columbia Pelikan is a manufacturer of turnkey software products for the Australian and New Zealand markets
- Acquisition expected to be completed at a cost of approx A$3.27 million (S$4.23 million) and comes with a profit guarantee of A$630,000 (S$816,000).
SINGAPORE, 12 September 2005 –
Mainboard listed Teckwah Industrial Corporation Ltd ("Teckwah" or "the Group") today announced its expansion into Australia and New Zealand with the acquisition of the value chain management services business from Columbia Pelikan Pty Ltd (“Columbia Pelikan”), one of Australia’s largest turnkey software manufacturer. This business segment focuses on serving the value chain requirements of the IT industry. The acquisition will come into effect from 1st October 2005 and will be completed at an estimated price of $4.23 million, comprising goodwill that amounted to S$3.49 million and fixed assets and inventory totaling S$738,000, subject to final inventory valuation.
This new Australian footprint was created with the registration of Teckwah Value Chain Pty Ltd (“Teckwah Australia”) on 9th September 2005, a wholly-owned Australian subsidiary of Teckwah Value Chain Pte Ltd. Targeted to commence operation on 1st October 2005, this new entity will help expand Teckwah’s business into Australia and New Zealand. This new business unit will take over the value chain business acquired from Columbia Pelikan and the contribution from its first year of operation will include an appropriated portion of the profit guarantee from the vendor. Totaling approximately A$630,000 (S$816,000), this profit guarantee will commence from 1 October 2005 through to 30 September 2006
“This development opens up opportunities for Teckwah in Australia and New Zealand. The challenges arising from new customers’ needs in these markets would help us broaden our value chain competencies and ultimately bring a new dimension to our business.” Said Mr. Thomas Chua, the Chairman and Managing Director of Teckwah Industrial Corporation Ltd.
The value chain business is part of the print-related business of Teckwah which is the larger revenue generator accounting for about 88% of the Group’s total revenue as at 30th June 2005. The balance of the Group’s revenue comprises contribution from its non-print related business under which are the third party logistics and reverse logistics services that serve the IT and the semi-conductor industries.
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