AcroMeta, a specialist controlled environments provider in the healthcare, biotechnology, pharmaceutical, research and academia sectors, has announced it received an indicative non-binding letter of intent from AESM in relation to the sale and purchase of 100% of its wholly-owned subsidiary, Acromec Engineers.
The parties aim to finalise the buyout by 28 February 2024 or such later date as mutually agreed between the parties.
Shareholders of AESM include several key management personnel of AcroMeta.
If the buyout is successfully concluded, AcroMeta’s remaining core business would be its co-working laboratory space business via its 70%-owned subsidiary Life Sciences Incubator Holdings (LSI).
we want to focus on the less capital-intensive and higher value-add co-working laboratory business to strengthen the Group's performance
In addition, the buyout is set to include the novation of LSI's net debt, further strengthening AcroMeta’s financial position.
AESM is also set to indemnify AcroMeta following the creditor's voluntary liquidation of Neo Tiew Power (NTP), in which AcroMeta has a 56% effective interest.
Levin Lee, Executive Chairman of AcroMeta, said: "While the controlled environments engineering EPC (Engineering, Procurement, Construction) business still has growth potential, there will be ongoing margin pressures and challenging operating conditions, primarily due to increased costs in energy, manpower and construction materials. In particular, the availability of skilled manpower poses a challenge together with higher wages and higher dormitory space rental costs. Thus, we want to focus on the less capital-intensive and higher value-add co-working laboratory business to strengthen the group's performance."