RATIONALE FOR THE ACQUISITION Clause Samples
The 'Rationale for the Acquisition' clause defines the underlying reasons and strategic objectives motivating the purchase of a business or asset. It typically outlines the anticipated benefits, such as market expansion, synergies, or access to new technologies, and may reference specific goals like increased revenue or operational efficiencies. By clearly stating the purpose behind the acquisition, this clause ensures that all parties have a shared understanding of the transaction's intent, helping to align expectations and provide context for related terms in the agreement.
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RATIONALE FOR THE ACQUISITION. As disclosed in the Circular, the Acquisition is the Group’s inaugural venture into the family medicine business and accordingly, the Group’s acquisition of 51.0% of PMG was agreed upon between the Group and the Vendors as it would give the Group majority control over PMG while limiting the Group’s investment risks of a new business segment. At the same time, it allows the Vendors, who had established and who continue to manage the daily operations of PMG, to continue to share in the risks and rewards of PMG in proportion to their respective shareholdings.
RATIONALE FOR THE ACQUISITION. Following the completion of the disposal of the Company’s and Group’s distribution business (the “Distribution Business”) on 31 October 2013 for a base consideration of S$70 million, it has been the intention of the Directors to deploy the proceeds from the disposal of the Distribution Business to fund future acquisitions and its working capital, consider reducing its bank borrowing and provide a dividend distribution. The Directors are of the view that the Acquisition is in the best interests of the Group and its Shareholders as the Directors believe that the Acquisition will enable the Company to diversify into a stable and profitable business with steady cash flow and long term prospects in Singapore. Upon completion, the Acquisition will have the potential to increase the market capitalisation of the Company and enhance Shareholders’ value over long-term and increase investor interest in its Shares, particularly investors who share the Company’s optimism in the growth of the property market in Singapore.
RATIONALE FOR THE ACQUISITION. The rationale for and benefits of the Acquisition are, inter alia, as follows:
(i) the Acquisition will enable the Group to have a stable stream of income and profits;
(ii) the Acquisition presents an opportunity for the Group to acquire a profitable company with viable business model and a good management team;
(iii) the Acquisition presents an opportunity for the Group to work with TNS to venture overseas in port management and logistics services;
(iv) there are various business opportunities that can be created by capitalising from the strengths of both the Group and TNS; and
(v) the business of TNS is a good strategic fit to the Company’s existing business in Singapore taking into account the synergy created by both businesses. Given the foregoing, the Board believes that the Acquisition will enhance shareholder value for the Company.
RATIONALE FOR THE ACQUISITION. East Rand Plastics has achieved consistent growth in sales and profitability since its business was downsized by Astrapak Manufacturing (Pty) Limited subsequent to a fire during 2013, which destroyed the bulk of the factories industrial division. East Rand Plastics satisfies all the criteria in Transpaco’s expansion strategy, namely: • A good track record, being highly profitable and cash generative; • Production processes well known and understood by Transpaco; • An experienced and self-sufficient management team (senior management having on average in excess of 20 years’ experience in operating the business); • Strong growth prospects, arising from its established position in South Africa and opportunities to further expand municipal, industrial, wholesale and export markets; • An opportunity to grow an existing leg to Transpaco operations; and • Expand current product offering to existing Transpaco customers. In addition, the Acquisition has the following attractive features and benefits for Transpaco: • Impressive production facility operating dedicated refuse bag manufacturing machinery with sound standard operating procedures; • Scalable business model which allows for significant growth through production expansion without excessive capex requirements; and • Anticipated earnings enhancement.
RATIONALE FOR THE ACQUISITION. OneLogix has been investigating suitable new premises for Vehicle Delivery Services Proprietary Limited (“VDS”), a division of OneLogix Proprietary Limited, in the Durban area. The land is a large tract of land between Durban and Pietermaritzburg that OneLogix plans to develop into a major vehicle storage facility for VDS, together with further facilities for general group usage, such as a large workshop, fuel tanks and truck parking areas for various group subsidiaries (“the development”).
RATIONALE FOR THE ACQUISITION. The entry into the Acquisition is in line with the Group’s strategy to expand its service offerings to clients such as providing training and development to renewable energy personnel in compliance with industry standards. The acquisition of the ▇▇▇▇▇ Training Centre Business by STS from Grupo ▇▇▇▇▇ would allow the Group to expand its capacity in providing training services to clients in Spain and the wider European region. Acquiring the ▇▇▇▇▇ Training Centre Business in Spain also aligns with the Group’s strategy in expanding its geographical reach and the Group’s business in providing training courses creates an additional revenue stream for the Group resulting in additional value for its shareholders. This initiative builds on the Group’s other business expansion efforts where it had (1) opened a new training centre in Chiayi County, Taiwan, on 23 October 2024, which focuses on delivering GWO accredited courses and specialised training programmes; (2) entered into a joint venture agreement dated 28 February 2025 with Oceancare Technical Training Centre Sdn Bhd for the purposes of collaborating on the operation and management of a proposed training centre in Miri, Sarawak offering OPITO and GWO accredited courses in Malaysia through a joint venture company to be incorporated by the parties; and (3) entered into a non-binding term sheet dated 27 March 2025 in relation to exploring the potential acquisition of Advanced Blade Repair Services Ltd which is a company that is primarily in the business of providing wind energy training solutions in the United Kingdom.
RATIONALE FOR THE ACQUISITION. The Property is strategically located approximately 800 meters from the Group’s existing acrylic manufacturing plant in Meru, Klang. The acquisition will allow the Group to expand its production capacity up to 3,200MT per month to meet the growing demand from overseas customers especially from US and Middle East. The acquisition will expect to contribute positively to the Group’s future earnings.
RATIONALE FOR THE ACQUISITION. The acquisition is in line with Resilient’s strategy of investing in dominant regional retail properties.
RATIONALE FOR THE ACQUISITION. The Manager’s principal investment strategy for CCT is to invest in quality income- producing commercial assets which will provide yield accretion and value creation opportunities to deliver stable distributions and sustainable total returns to the Unitholders. The Manager is of the view that the Acquisition fits the above investment strategy. With the Property located in Rochor Planning Area, at the fringe of the Downtown Core and within the Arts, Culture, Learning and Entertainment hub of the Selegie/Bras Basah/Bugis area, the Manager believes that this Property, when completed in the 4th quarter 2008, will enjoy healthy occupancy rates and rental rates due to the tight office supply. The Manager believes that the Acquisition is expected to benefit Unitholders by improving income diversification and reducing the reliance of CCT’s income stream on any single asset as well as allowing CCT to diversify its portfolio of assets in a different planning area. The Acquisition is also in line with the Manager’s target to grow the asset size of CCT to between S$5 billion and S$6 billion by 2009. With the inclusion of the Acquisition, the gross assets of CCT will increase from S$4.6 billion to approximately S$4.8 billion. This will further strengthen CCT’s position as the largest commercial real estate investment trust by asset size in Singapore.
RATIONALE FOR THE ACQUISITION. Legal limestone reserves are a scarce resource in Sabah, as most of the limestone reserves are situated in Class 1 Forest Reserve, Bird Nests’ Sanctuaries, and Heritage Parks. With the acquisitions, the Company together with its existing land bank of limestone reserves held for long term investment shall become a substantial player in the supply of high grade limestone resources. Sabah is the only State in Malaysia without clinker production and imports over 1.5m tons of clinker and cement yearly. The setting up of a clinker plant in Sabah is imminent and the main source of feedstock for the production of clinker is limestone. Over the years, Borneo marble brand has established a name and is well known in China. The acquisition price represents a substantial discount compared to the value of the resources available with valid quarry operating conditions endorsed on all the titles.