UMS Integration Limited Acquires Remaining 30% in Starke Singapore Pte. Ltd., Making It a Wholly Owned Subsidiary

Key Highlights

• UMS Integration Limited (“UMS” or “the Company”) has completed the acquisition of the remaining 30% stake in Starke Singapore Pte. Ltd. (“Starke”), making Starke a wholly owned subsidiary.
• The transaction was finalised through a Sale and Purchase Agreement signed on 2 March 2026, with vendors Mr. Luah Kian Tiong (LKT) and Ms. Yue Chee San.
• The aggregate consideration for the 150,000 ordinary shares (30% of Starke) amounted to S\$8,219,782, based on the unaudited management accounts of Starke as of 31 August 2025.
• LKT will cease to be the managing director of Starke with effect from 28 February 2026, as part of the agreement terms.
• The acquisition does not constitute a discloseable transaction under Chapter 10 of the SGX Listing Manual, but is being voluntarily disclosed for transparency.

Transaction Details

Starke Singapore Pte. Ltd. is a Singapore-incorporated company focused on supplying aluminum alloy products, primarily to the precision engineering industries. Starke is an existing supplier to the UMS Group, and this acquisition is part of UMS’s ongoing strategy to streamline operations and better manage overhead costs across the Group.

The consideration of S\$8,219,782 for the Sale Shares was determined after arm’s length negotiations between UMS and the vendors, reflecting the net book value of the shares as of 31 August 2025. The agreement provides that any adjustment to the net book value based on audited financials as at 31 December 2025 would be reflected in LKT’s severance package. However, based on the final audited accounts, no adjustment was necessary.

The acquisition was funded by UMS’s internal resources and/or external bank borrowings. The latest financial statements of the Group indicate that the acquisition will not have a material impact on UMS’s net tangible assets or earnings per share for the financial year ending 31 December 2026.

Value of the Acquisition

• The Sale Shares are not publicly traded, and thus have no open market value.
• Based on Starke’s audited management accounts as at 31 December 2025:
  • Net profit attributable to the Sale Shares: approximately S\$985,450
  • Net tangible asset value per share: approximately S\$57.10
• No independent valuation of Starke was conducted as at the date of agreement.

Completion and Control

The acquisition was completed on 2 March 2026 after all conditions precedent in the agreement were fulfilled. As a result, Starke is now a wholly owned subsidiary of UMS Integration Limited, consolidating its position in the supply chain and potentially improving operational efficiencies across the Group.

Potential Price Sensitive Information for Shareholders

• The acquisition streamlines the Group’s structure and may result in improved cost management and operational synergies.
• There is no immediate material financial impact expected for the financial year ending 2026, but long-term benefits may accrue from enhanced control and integration.
• The departure of LKT as managing director of Starke could signal a shift in the company’s management style and strategic direction.
• Independent Director Ms. Xie Xingbei, Pearlyn, is a partner in the law firm advising on the transaction; however, the main transaction partner is Ms. Gwendolyn Gn. No other directors or substantial shareholders have interests in this transaction, except through their shareholdings.

Access to Transaction Documents

Investors may inspect the Sale and Purchase Agreement at the company’s registered office (23 Changi North Crescent, Singapore 499616) during business hours for three months following the announcement.

Directors’ Responsibility Statement

The directors affirm responsibility for the accuracy of the information disclosed and confirm that, to the best of their knowledge, all material facts have been fully disclosed.

Cautionary Statement

Shareholders and potential investors are advised to exercise caution when dealing in UMS securities. They should consult their professional advisers if in doubt about any actions to take.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors are advised to conduct their own research and consult their financial advisers before making any investment decisions. The information provided is based on company announcements and is believed to be accurate at the time of writing, but no warranty is made as to its completeness or accuracy.

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