SKY ICT Public Company Limited (SET: SKY) has announced that its Board of Directors have passed a resolution approving Metthier Company Limited (Metthier), a subsidiary of the company, to invest in Siam Administrative Management and Security Guards Company Limited (SAMCO) by acquisition of 12,000,000 shares at a par value of 10 baht per share, representing 100% of all issued and sold ordinary shares of SAMCO from the existing 3 shareholders of SAMCO at a total acquisition value of Baht 500 million.
SAMCO is a services business that provides four types of services, namely (1) building and cleaning management services, (2) security services, (3) security system management services, and (4) cash management and security transportation services.
In 2022, SAMCO reported Baht 1,315 million of revenue, -7% from 2021. Meanwhile, the company recorded Baht 39.33 million of net profit in 2022, +35.5% from a year prior. SAMCO had total liability and equity of Baht 468 million.
Moreover, SAMCO also has a subsidiary, which is Siam Deep Tech that provides design, installation, security systems and building management systems to corporate customers which are ready to support and enhance the efficiency of SAMCO’s services in terms of technology along with developing innovation and products for security and site management work. Siam Deep Tech aims to emphasise the quality of service according to international standards by understanding customer needs to present modern and suitable technology, providing services 7 days a week, using AI technology to support service work and secure the highest level of customer data.
SKY noted that it has considered the value of the consideration compared with the acquired asset and deemed that the value of the consideration is valuable and reasonable compared with the SAMCO’s business and income potential including the nature of SAMCO’s business operations which will facilitate to promote, support, and increase efficiency and broaden the scope of the company’s business to cover and meet the needs of customers, which will benefit the shareholders and the company the most.
Expected benefits from acquiring SAMCO includes;
1) The company foresees growth opportunities in (1) building and cleaning management services, (2) security services, (3) security system management services, and (4) cash management and security transportation services which continuously grow. An investment in SAMCO shall enhance the scope of business of the company. Upon completion of investment in SAMCO, the company can use its experience in system security to develop business operations in the future.
2) The company can apply the existing expertise in innovation and technology to SAMCO’s business to create mutual benefits (Synergy) and can extend the business of the group to be more diverse, such as using a data management system for providing cash delivery services, etc.
3) To invest in a company that is one of the leaders in the security and cleaning business in Thailand by having a customer base of more than 300 customers which will help promote the security system service business or the cleaning service business of Mettier, which is a subsidiary of the company, resulting in an increase in the overall income of the company and with such combination the company will be able to reach economy of scale in the future.
In the execution of this Share Purchase Transaction of SAMCO, Metthier shall make a payment for the acquisition of shares by cash in the amount of Baht 500,000,000, which comes from Mettier’s capital received from the increase of registered capital and loans from the company.