Advance SCT says it has agreed to acquire the entire issued and paid-up share capital (2.5 million shares) of Soon Sing Metal Trading Sdn Bhd (SSMT) for $1.332 million; the 49.9% paid-up share capital (200,000 shares) of New Tsingyi (NTY) from SSMT for $200,000; and $2.05 million in advances made by SSMT and individuals Lim Chwee Poh, Tan Seng Kiah and Wong Wee Keong to NTY for its working capital requirements.

SSMT, a company incorporated in Malaysia, is engaged in the recycling and trading of ferrous and non-ferrous scrap metals. SSMT operates from a factory in Johor, West Malaysia and mainly carries out its business activities in Malaysia.

NTY, a company incorporated in Singapore, is a joint venture between ASCT and SSMT where ASCT holds 50.1% of the share capital of NTY. NTY is engaged in the recycling and trading of ferrous and non-ferrous scrap metals. NTY operates from a factory in Singapore and has an international network of customers and suppliers.

Advance SCT says of SSMT will enable the group to expand its businesses into Malaysia and generate new revenue streams. The new facilities will also support the group’s smelting activities in Klang.

The acquisition of NYT will enable the group to exercise better control over as well as increase its share of economic benefits from its businesses.

The acquisition of the advances will allow the group to retain the additional working capital of NTY provided by the vendors and also strengthen the capital base of the group as a whole.