Link: https://links.sgx.com/1.0.0/corporate-announcements/MPHP557VABUDEV55/d20fade284c0de409653b94786a9c77c719a6965754b6dea6f5a037f91c16f2b

Smmary:

• Skylink’s unit has agreed to acquire the commercial‑vehicle upper‑body fabrication and chassis‑modification business of Chuang Li Partners on a going‑concern basis for up to S$1.75 million in cash and shares.

• The consideration comprises S$750,000 in base cash payment and up to S$1.0 million in deferred earn‑out, calibrated to a 12‑month post‑completion profit target of S$350,000.

• Part of the deferred sum (up to S$500,000) will be paid in cash, with any balance satisfied via up to 1.66 million new Skylink shares priced at S$0.30 each, subject to a 12‑month lock‑up.

• Skylink will operate the acquired business via new joint‑venture vehicle Chuang Li Partners (2017) Pte. Ltd., in which its subsidiary will hold 80%, with key managers Joseph Yeh and Cheng Kok Kin taking 10% each.

• The target generated adjusted net profits after tax of S$356,283 in 2024 and S$401,067 for the nine months to 30 September 2025, with net tangible assets rising to about S$805,000.

• The board touts the move as a strategic bolt‑on that broadens engineering solutions, capacity and customer reach, with pro forma FY2025 EPS rising from 0.0155 to 0.0174 Singapore cents and NTA per share also improving.

• The transaction is classified as a non‑disclosable deal under Catalist rules, but Skylink is making a detailed announcement as it will issue new shares to the vendor and put restrictive non‑compete covenants on the sellers.