Listed Companies' Announcement
FEDERAL INTERNATIONAL (2000) LTD
FEDERAL INTERNATIONAL ACQUIRES A 50% STAKE IN LEADING JAPANESE VALVE MANUFACTURER, KVC CO LTD
Mainboard-listed Federal International (2000) Ltd ("Federal"), today announced that it has entered into an Investment and Shareholder Agreement with KVC Co Ltd ("KVC Japan") to acquire a 50% stake in KVC Japan, a leading valve manufacturer and distributor of valves and valve-related equipment, for a total consideration of 59.28 million yen, comprising 300 new shares of 50,000 yen each. The consideration was arrived at on a willing buyer and willing seller basis. The acquisition will be funded by internal resources.
The balance of 50% shareholding will continue to be held by the existing Japanese shareholders, namely, Mr K. Kobayashi, Managing Director, and Mr S. Ito, Executive Director of KVC Japan.
The authorised capital of KVC Japan is 40 million yen comprising 800 ordinary shares of 50,000 yen each and the issued & paid-up capital is 30 million yen comprising 600 ordinary shares of 50,000 yen each.
KVC Co Ltd (Japan) manufactures and distributes various valves and valve-related equipment. KVC Japan has production facilities in Japan and Scotland. KVC Japan is ISO 9001 and API 6D certified.
The acquisition in KVC Co Ltd (Japan) is not expected to have a material effect on the net tangible assets or earnings per share for the year ending 31 December 2001.
None of the directors or substantial shareholders of the Company has any interests, direct or indirect, in the above acquisition.
Submitted by Chng Geok, Company Secretary on 28/08/2001 to the SGX