SENAI, MALAYSIA (Aug. 18, 3:50 p.m. ET) — Marktrodach, Germany-based Projektarbeit Technische Beratung Beratung International (Protev) plans to buy a majority stake in financially-strapped auto parts molder Sanichi Technology Bhd.
Senai, Malaysia-based Sanichi said in a filing to the Bursa Malaysia stock exchange that the due-diligence was taking place in August and September. The companies signed a memorandum of understanding in June.
Sanichi has also told the Kuala Lumpur stock exchange that it was in the midst of debt restructuring.
Protev expects to take a controlling 80 percent stake in Sanichi, according to a Malaysian media report.
Protev, which also has offices in the United States and Mexico, is involved in research and development, acts as project advisor, offers technical consulting services and mold production for the automotive industry.
Sanichi designs, fabricates and die-cast parts for customers in China, Germany, France, Indonesia, Japan, Mexico, Singapore, Spain, Thailand and Vietnam.
However, its financial performance has been impacted by weak market.