Company Announces Major Diversification and Acquisition Plans at Extraordinary General Meeting

Date of Meeting: 28 October 2025
Venue: Suntec Singapore Convention & Exhibition Centre

Summary of Extraordinary General Meeting (EGM)

The Company convened an Extraordinary General Meeting (EGM) attended by key independent directors and shareholders. Notably, the Non-Executive Chairman and Executive Director were absent but extended their apologies. The meeting was chaired by Mr. Quek Meng Teck, Derrick, Lead Independent Director.

Key Resolutions Passed

Shareholders approved two major and inter-conditional resolutions:

• Ordinary Resolution 1: The proposed expansion and diversification of the Group’s business, as detailed in the Circular. This enables the Company to enter into new business areas, invest in or acquire assets, businesses, or interests related to these new ventures. The Board is empowered with broad authority to execute these diversification initiatives.
• Ordinary Resolution 2: The proposed acquisition of the entire issued and paid-up share capital of United Industries Holdings Sdn. Bhd. (“Target Group”). This acquisition qualifies as both a major transaction and an interested person transaction under SGX rules. The Board is authorised to execute all necessary agreements and documents to complete this acquisition.

Both resolutions received unanimous approval from the shareholders present, with 34,268,193 shares (100%) voted in favour and none against.

Details of the Proposed Diversification

The diversification plan grants the Group flexibility to expand beyond its existing business lines. The Company may now:

• Invest in, purchase, or dispose of assets or interests related to the new business sectors.
• Enter into contracts, agreements, and undertakings that the Directors deem necessary for implementing these new business activities.
• The Directors are empowered to execute all actions and documents required to effectuate this strategy, including making amendments or modifications to relevant agreements and filings with authorities.

Shareholder Impact: This diversification could potentially unlock new revenue streams and mitigate risks associated with reliance on current business segments, making it a significant development for investors.

About the Proposed Acquisition

The acquisition of United Industries Holdings Sdn. Bhd. offers immediate exposure to the established automotive parts manufacturing sector in Malaysia. Key points discussed at the meeting include:

• The Target Group has a 52-year track record and is a key supplier to major automotive manufacturers in Malaysia.
• Operations run on a 24-hour shift (not at full capacity), allowing flexibility to handle urgent orders and new business.
• Despite a recent RM10 million revenue decline in the first quarter, management attributes this to market demand fluctuations and remains confident in the Group’s long-standing customer relationships and prudent asset utilisation.
• Capex requirements to sustain operations are estimated at RM5–10 million, depending on project scale. The Target Group continues to invest to maintain operational capabilities.
• While the global automotive industry is moving towards electric vehicles (EVs), the Target Group’s products remain relevant for hybrid and extended-range EVs. EV adoption in Southeast Asia is still low, minimising current impact.

Shareholder Impact: This acquisition could be immediately earnings-accretive and provides strategic diversification, but investors should monitor the ongoing capex needs and sector trends, particularly the gradual shift towards EVs.

Poll Results and Governance

The Company engaged independent parties to oversee the poll and ensure regulatory compliance. All interested parties abstained from voting according to SGX requirements. The resolutions passed with full shareholder support, highlighting strong alignment on the Company’s strategic direction.

Potential Share Price Impact

These developments are highly material and could significantly move the Company’s share price:

• The expansion into new business areas and a major acquisition provide growth catalysts and could improve the Company’s risk profile and earnings outlook.
• Unanimous shareholder support signals confidence in management’s strategy.
• Investors should continue to monitor integration progress and the impact of macro trends in the automotive sector, especially regarding the transition to EVs.

Conclusion

The EGM marks a pivotal moment for the Company, setting the stage for significant diversification and expansion via a major acquisition. These initiatives are poised to reshape the Company’s growth trajectory and present both opportunities and risks for existing and prospective investors.

Disclaimer: This article is based on official minutes of the Company’s Extraordinary General Meeting and is intended for informational purposes only. It does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions.

View Duty Free Intl Historical chart here