LONDON (Thomson Financial) - RCG Holdings Ltd. said its subsidiary RCG China
Holdings Limited has bought a further 40.1 percent stake in Vast Base Technology
Ltd., a Singapore-based provider of RFID technologies, from Multi Metro Ltd for
HK$410.20 million, or 27.0 million pounds.
The biometric and radio frequency identification security company said it
will fund the acquisition using its existing cash resources.
It said with the acquisition, its stake in Vast Base will be 60.0 percent.
The company said the deal is expected to enhance its earnings for the
current year, ending Dec. 31.
RCG said Vast Base, which is already its technology partner, reported EBITDA
of 600,000 pounds and net assets of 600,000 pounds for the four months to April
30, 2008.
RCG Holdings said Vast Base is projected to achieve a net positive cash flow
of 7.6 million pounds for the full year.
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