Scrap metal group CMA Corporation Ltd has finalised the acquisition of Singapore-based secondary metals processor Peakmore Enterprise Pte Ltd for $5.2 million in cash and scrip, the company has announced.
The full text of a company announcement is pasted below
CMA Corporation Limited (ASX: CMV) is pleased to announce that it has today completed its acquisition of the business and assets of Peakmore Enterprise Pte Limited (Peakmore), following advice to the market on 19 July 2007. Peakmore is a Singapore-based processor and trader of secondary metals products. The acquisition is forecast to be earnings accretive.
A total of S$6.5 million (approx A$5.2 million) will initially be paid in relation to the Peakmore acquisition. This comprises S$1 million in cash and 9,464,624 fully paid ordinary shares in CMA Corporation Limited at an issue price of A$0.46 (S$5.5 million). In addition, the vendors of Peakmore will receive further consideration of S$3 million in cash and shares if the financial performance of the acquired business reaches S$2.5 million in the twelve month period ending 31 March 2008.
The Managing Director of CMA, Peter Hatfull, said that the acquisition was a significant achievement for the Company.
"Peakmore provides CMA with its first permanent site in the Asian market, and we look forward to building on the trading presence we already have in the region."
Peakmore has a 15 year history trading in secondary metals, including scrap, semi-finished products, flat products, and other non ferrous materials.
