SINGAPORE (Mar 5): Far East Group announced that it has acquired the entire issued and paid-up ordinary shares in M-Tech Air-Con & Security Engineering.

The vendors are Quek Poh Chuan and Lee Sui Fook and the consideration for the acquisition is $7 million including 2.98 million new M-Tech shares.

M-Tech's core business is to provide Air Conditioning and Mechanical Ventilation (ACMV) services for residential and commercial buildings. It has an issued and paid up capital of $0.5 million divided into 0.5 million ordinary shares.

Following the acquisition, Far East will be making an application to the Singapore Exchange for the listing of 2.98 million M-Tech shares on the Catalist board. The initial public offering announcement will be made in due course.

As at Apr 27, 2018, M-Tech had about 108.48 million shares, and assuming the successful allotment and issue of the consideration shares, the total number of issued shares will increase to 111.46 million shares.

According to the appointed auditor, M-Tech is expected to achieve at least $0.75 million in net profit after taxes (NPAT) for FY19 and FY20, respectively.

Far East will fund the cash consideration through internal resources and/or bank borrowings.

Shares in Far East last traded at 14 cents on Monday.