Apr 15 2021, 07:57 AM, updated 5y ago
VSTECS BERHAD
and its subsidiaries (“the Group”) started in 1985 with the establishment of VSTECS KU
Sdn. Bhd. Today, the Group is a leading distribution hub for Information and Communications Technology
(“ICT”) products in Malaysia via VSTECS Astar Sdn. Bhd. and VSTECS Pericomp Sdn. Bhd..
Leading global brand names like
Hewlett-Packard,
Dell,
Lenovo,
Apple,
IBM,
Oracle
Microsoft,
7 big companies!!!!!!
and
EMC leverage on VSTECS’ extensive channel partner network to distribute their products across the region.
VSTECS Holdings Ltd
0856.HK[SIZE=14]
Listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 15 April 2010,
VSTECS is an associate company of VSTECS Holdings (Singapore) Limited, which is one of the leading ICT
distributors in Asia Pacific, accessing to a network of more than 25,000 channel partners across
China,
Thailand, Malaysia, Singapore, Indonesia, the Philippines, Cambodia, Laos and Myanmar.
VSTECS Holdings (Singapore) Limited is a wholly-owned subsidiary of [size=9] VSTECS Holdings Ltd 0856.HK listed on the Hong
Kong Stock Exchange.
VSTECS distributes a comprehensive range of ICT products comprising Notebooks, personal computers
(“PCs”), smartphones, smartwatches, tablets, printers, software, network and communication
infrastructure, servers, and enterprise software from more than 40 leading principals.
With a nationwide channel network of
more than 6,600 resellers comprising of retailers, system integrators
(“SI”) and corporate dealers,
VSTECS also provides value-added product support and technical services.
For more information, please visit www.vstecs.com.my
Press Release – 8 August 2007
HKSE-LISTED VST HOLDINGS LIMITED, A LEADING ICT PRODUCTS
& COMPONENTS DISTRIBUTOR
IN THE PRC MARKETS
, ACQUIRES
52.5% STAKE IN ECS’ CAPITAL FOR S$128 MILLION IN CASH;
CREATING A FORMIDABLE, FULL-RANGE ASIAN ICT MNC
DISTRIBUTOR WITH COMBINED SALES OF OVER S$3 BILLION
AND NET PROFIT EXCEEDING S$50 MILLION*; DISTRIBUTING ICT
PRODUCTS FROM COMPONENTS TO DIGITAL CONSUMER
PRODUCTS AND ENTERPRISE SYSTEMS;
TO RANK AS TOP 3 ICT DISTRIBUTOR IN ASIA-PACIFIC
• Change in controlling shareholders but status quo at ECS’ top management
• Continuity and stability of ECS’ modus operandi and commitments to global
IT brand principals, strategic partners and over 18,000 regional channel
partners
• ECS’ key management and founders, namely Group CEO Tay Eng Hoe,
Narong Intanate, Foo Sen Chin, and Foong Kam Tho to remain at the helm of
ECS Group;
• Of several suitors, VST’s strong upstream component distribution business
and market-leading position in China form the perfect fit with ECS’
downstream regional distribution of completed end-user ICT products;
offering enhanced potential for new growth areas and maximum value
creation
• ECS to continue pursuing its two-pronged strategy of selectively growing
distribution portfolio and expanding market coverage within China and
beyond South-east Asia, including Vietnam and India;
• Additionally, ECS can jumpstart its extension upstream to components
distribution in its existing markets, launching a new dimension of growth
* based on proforma sales and net profit figures for FY ended March 2007, assuming ECS becomes VST’s subsidiary upon
completion
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• All-cash deal done at 0.668 Singapore dollar a share
• Deal completion to trigger mandatory general offer by VST to acquire
remaining ECS shares
• VST intends to keep ECS’ listing on Singapore Exchange, to facilitate access
to capital markets and support ECS’ continuing expansion
Singapore, 8th August 2007 – Singapore Exchange Mainboard–listed ECS Holdings
Limited (“ECS” or the “Group”), a leading regional Info-Comm Technology (“ICT”)
solutions provider representing best-of-class global brand names, with 33 offices in six
countries -China, Thailand, Malaysia, Singapore, Indonesia, and the Philippines;
announced today a collective Conditional Sales and Purchase Agreement (“SPA”) signed
between Hong Kong Stock Exchange-listed VST Holdings Limited (“VST”) and certain
substantial shareholders of ECS (“the Vendors”).
The SPA entailed a total of 191,604,009 sale shares representing approximately 52.5%
stake in the capital of ECS and thus, result in a change of ECS’ controlling shareholders
to VST, with ECS becoming its subsidiary upon completion of the SPA.
Notwithstanding this change in substantial shareholders, business-wise there will be no
change in the leadership of ECS Group after the completion of the SPA.
The Group’s proven top management, namely Mr Tay Eng Hoe, who is also Group CEO;
Mr Narong Intanate, Mr Foo Sen Chin and Mr Foong Kam Tho, will continue to prevail at
the helm, as well as steer their respective country operations in Singapore, Thailand,
Malaysia and the PRC.
As such, the continuity and stability of ECS’s modus operandi and partner commitments
will be ensured going forward – it will be business as usual, with respect to the Group’s
portfolio of global IT brand owners / principals, strategic partners,
over 18,000 regional channel partners,
as well as its
2,000-strong employee base across the region.
Co-founded in 1991 by Chairman and CEO, Mr Li Jialin, VST has become a leading
distributor of computer and peripheral products and other information technology products
of well-known brands to the People’s Republic of China’s rapidly-growing powerhouse
markets.
Key products include hard disk drives, CPUs, and PC motherboard products; storage
devices and other digital media products, etc.
VST has established solid long-term
partnerships with internationally renowned IT giants such as
Seagate,
AMD
, Supermicro,
Western Digital,
Lexar, Corsair, AsRock
and
Patriot, etc.
In order for VST to have a controlling stake in ECS, the Vendors, which include ECS’
single largest shareholder, ST Electronics (Info-Software Systems) Pte Ltd, as well as Mr
Tay Eng Hoe, Mr Liu Wei, Mr Narong Intanate, Mr Foo Sen Chin, Mr Foong Kam Tho, Mr
Lin Chien and Glorious Success Pte Ltd, had to commit to selling their respective entire
ECS shareholdings during negotiations so as to enable VST to achieve its objective.
Commenting on the background of the sale on behalf of the participating substantial
shareholders, Mr Tay Eng Hoe said, “Reflecting the strong results by the Group within the
last two years and bullish market forecasts on ICT spending in the region, we have
received serious offers from various suitors. These included private equity funds and
very large foreign ICT distribution companies, who value our brand portfolio, management
team and established regional network across six countries.”
“It has been a challenging process for us in evaluating the merits of each proposal as the
final short-listed suitors are strong players in their domains. We took great pains to
consider all aspects and thoroughly drill through the future plans of our suitor companies
and their specific intentions for ECS post-acquisition, as we had to consider the business
interests of our top ICT brand principals and strategic partners, who have been strongly
supporting ECS since our early days,” added Mr Tay.
“In the end, we were won over by the perfect fit between VST’s strong ‘upstream’ ICT
component distribution portfolio with solid brand names and market-leading positions in
the fast growing China market, and ECS’ strengths in downstream distribution of ICT
products, enterprise systems and networking products.”
“The prospect of creating a formidable, full-range ICT Asian multi-national distributor
group with sizeable combined resources and ability to be the potential clear leader in the
Asia-Pacific region, inspired all of us to go with VST,” enthused Mr Tay. “ECS can now
include components distribution in our existing markets, thus launching a new growth
dimension for the Group.”
“More importantly, the business philosophy and pro-employee mindset of VST and Mr Li
closely mirror principles held dear by ECS. We firmly believe in unlocking the full
potential of this new partnership with VST – after all, ECS was founded on the combined
strengths of several ICT companies in different countries who came together to form ECS
Holdings which has achieved remarkable success over the years.”
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Commenting on ECS as his optimum choice, Mr Li, Chairman, CEO and co-founder of
VST, said. “To launch our expansion into the next era of growth, we have been actively
seeking appropriate complementary partners for some time now. Ideally, there should be
limited duplication of operations so that we can immediately focus management time and
energies to tapping new synergies and capturing new potential markets, instead of being
distracted by efforts to streamline both operations to minimise wastage.
Thus, ECS fits our criteria across all aspects, while ECS Group CEO Mr Tay and I share
similar outlook and business principles. I gladly extend a warm welcome to all members
of the ECS Group and am truly pleased that the top management of ECS are staying on.
The in-depth experience and goodwill enjoyed by ECS management team in the regional
markets they operate in will help VST to harness the tremendous potential of our
alliance,” added Mr Li.
VST will effectively gain a talent pool and extensive distribution footprint in the Asia
Pacific region, bolstering its segment strengths and existing networks in its prime China
market. In particular, ECS’ network will accelerate VST’s intended penetration into the
southern regions of pan-Asia.
“We expect to create synergies due to the significant economies of scale and sharing of
costs and are confident that our investment in ECS will enhance VST’s overall
relationships and support from key customers. Together with ECS, we will be able to
jointly penetrate previously untapped high-growth markets like India and Vietnam on a
stronger footing,” concluded Mr Li.
Upon completion, VST will have to make a mandatory general offer for the remaining
ECS shares. “It is VST’s intention to keep ECS’ listing on the Singapore Exchange. ECS’
accumulated goodwill and corporate transparency track record as a listed company would
be invaluable in facilitating access to capital markets in Singapore, which will support the
continuing expansion of ECS, of which VST is fully committed to pursue.” said Mr Li.
Completion of the SPA, expected to be in October 2007, will trigger a mandatory general
offer by VST through its financial adviser in Singapore, ABN AMRO Bank N.V., Singapore
branch, to acquire the remaining ECS ordinary shares.
This post has been edited by plouffle0789: Apr 18 2021, 06:46 PM
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