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<a href="http://www.uac.co.th/" target="_blank">UAC Global Plc (UAC)</a>, a SET-listed trading company supplying wide range of chemicals and equipment to energy and petrochemical industries has announced that it will be establishing a subsidiary &#8211; UAC Advance Polymer and Chemicals &#8211; to take over chemical manufacturer and distributor <a href="http://advancepolymers.co.th/" target="_blank">Advance Polymer and Chemical (APC)</a>, for a consideration of 730 million baht ($22.33 million).
The company expects to close the deal by the end of this quarter, said UAC’s chief executive Kitti Jivacate.
The subsidiary that has been set up especially for this deal, has a registered capital of 50 million baht ($1.53 million). To fund this, the company will borrow 450 million baht ($13.77 million) from financial institutes, while 280 million baht ($8.56 million) will come from its working capital.
APC produces and supplies range of polymer emulsions and water based polymer solutions for various industries including, paints and coatings, adhesives, construction, printing inks, textile and fiber fill. Most of APC’s clients are in Thailand.
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Kitti said that this takeover will expand UAC&#8217;s profile from being a trader to that of a producer while helping enlarge its customer base and increasing its product lines.
“This deal will enable us to sell our products to APC’s customers, and sell APC’s products to ours. Also, it will generate more income from other industries, helping us diversify the risk from depending on only the energy and petrochemical industries,” he added.
He also sees the potential of APC’s products, which have high demand in developing countries, and plans to expand its market in Myanmar, Laos and Cambodia.
APC has had a constant revenue and profit record over the past three years. It has currently booked a revenue of 437.15 million baht ($13.37 million) and the profit of 52.1 million baht ($1.59 million).
Once this deal is completed, UAC will book the transfer of APC’s revenue immediately. As a consequence, the revenue this year may be higher than its earlier target at 1.2 billion-1.3 billion baht ($36.7 million-$39.77 million).
Kitti added that UAC is considering another energy-related company for merging and acquisition, and expects to finalise the deal within this year.

UAC Global Plc (UAC) is to form a subsidiary to take over chemical manufacturer Advance Polymer and Chemical, for a consideration of 730 million baht.

Thailand’s UAC takes over APC for $22.33m

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Thailand’s UAC takes over APC for $22.33m

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