KUALA LUMPUR (Sept 8): AT Systematization Bhd has become a substantial shareholder of AE Multi Holdings Bhd after acquiring an 18.18% stake in the latter yesterday.

In a filing with Bursa Malaysia today, AT Systematization said its wholly-owned subsidiary AT Precision Tooling Sdn Bhd bought the stake, comprising 77.86 million shares, in an off-market transaction for RM15.65 million.

The purchase was funded by bank borrowings and funds arising from exercise of convertible securities, AT Systematization said.

AE Multi is principally involved in manufacturing, selling, sourcing and reselling of printed circuit boards and related products, electronics and telecommunication components and related products.

AT Systematization, meanwhile, is an integrated designer and manufacturer of industrial automation systems and precision engineering solutions.

"The acquisition is consistent with the group's strategy to enhance its core businesses in the design and manufacture of precision components, fabricate precision tools etc for use in precision engineering applications," said AT Systematization.

It added that as it primarily serves customers from the semiconductor industries, the acquisition will enable the group to further improve its prospects in the semiconductor segment via leveraging on AE Multi's strengths and expertise in the manufacturing of printed circuit board segment, coupled with AE Multi's existing business presence in Thailand.

AT Systematization also noted that the acquisition is expected to allow the group to benefit from economies of scale and create synergies through collaboration and sharing of technical expertise between the group and AE Multi, with an aim to enhance the group's financial performance and shareholders' value.

Choong Lee Aun and Datuk Nik Ismail Nik Yusoff are directors of both AT Systematization and AE Multi. They, however, have no interest in both companies or any of their related companies.

While the seller of the 18.18% stake has not been disclosed, its 2019 annual report showed that AE Multi's major shareholder ACE Credit (M) Sdn Bhd had a direct interest of 77.86 million shares or 23.64%.

Shares in AT Systematization closed unchanged at nine sen today, valuing the group at RM203.72 million.

AE Multi's shares were down three sen or 13.95% at 18.5 sen, with a market capitalisation of RM79.21 million.