GLOVE manufacturer and distributor UG Healthcare’ subsidiarly Unigloves Singapore, has fully acquired the remaining shares in its 19.3 per cent-owned associate company in Europe, Unigloves Germany, for 16.9 million euros (S$24.7 million).
This would allow the group to consolidate its control in the unit and increase its participation in Unigloves Germany’s marketing and distributing operations, said UG Healthcare on Wednesday (May 8).
Unigloves Germany is an investment holding company that owns an entire equity interest in a company that imports and exports medical treatment utilities.
Together with this subsidiary, Unigloves Germany has served as one of UG Healthcare’s important downstream distribution networks in Europe since its initial public offering in 2014, added the group.
UG Healthcare said it also exercises “significant influence” in Unigloves Germany’s operations and management, including policies and decision-making.
The group financed its acquisition through a combination of loans and a 6.4 million-euro contribution made by Unigloves Singapore to the free capital reserves of Unigloves Germany.
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These were part of the transaction’s closing conditions, which also included an acquisition loan agreement as well as the repayment of a 1.4 million-euro bank loan.
UG Healthcare said all closing conditions under its agreement with Unigloves Germany’s vendors have been satisfied, and that the acquisition is completed.
Based on UG Healthcare’s latest audited financial statements for FY2023 and Unigloves Germany’s audited management accounts for Dec 31, 2023, UG Healthcare’s loss per share after the acquisition would have been S$0.0327 instead of S$0.0332. This is assuming that the acquisition was completed on Jul 1, 2022.
Had the acquisition been completed on Jun 30, 2023, the group’s net tangible assets per share as at end-June 2023 would have been S$0.2569 instead of S$0.2889.
Shares of UG Healthcare : 8K7 0% ended Tuesday S$0.002 or 1.8 per cent higher at S$0.111.
