Friday, October 30, 2015

IPS Securex to acquire stakes in two companies to boost security business

IPS Securex Holdings, the provider of security products and integrated security solutions, announced on Thursday night it has signed an MoU to acquire equity interests in Yatai Security & Communications and Avac Systems.

Under the MoU, IPS Securex will acquire 10% and 30% of the issued share capital of Yatai from vendors Lim Ang Seng and Lim Bang Quan respectively and a 40% of the issued share capital of Avac from vendor Lim Ang Seng.

IPS Securex believes that the proposed acquisition is synergistic and will complement and further boost the group’s security business by enhancing its market presence and expand its market share in Singapore.

Yatai is a private company incorporated in Singapore in the business of general contracting for non-building construction, which includes the supply, installation and commissioning of public address, communication and security surveillance systems.

Avac is a private company incorporated in Singapore, in the business of general wholesale trade, which includes the provision of maintenance services for public address, communication and security surveillance systems.

The purchase consideration will be based on NAV of the target companies attributable to the sale shares as at Oct 31, says IPS Securex. As at Aug 31, the NAV of Yatai and Avac were $1.47 million and $438,000, respectively.

Kelvin Lim, Chief Executive Officer of IPS Securex, says: “The proposed acquisition will help to augment our security business and expand our market presence in Singapore. This will enhance our growth potential as we continue to build up our portfolio and establish our market presence beyond the Asia Pacific.”

IPS Securex last traded at 32 cents.

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