Majestic Corp. Plc has announced entering into a conditional share purchase agreement (SPA) for Majestic to acquire the entire issued share capital of Telecycle Europe Ltd.
Telecycle is described by Majestic as “a specialist recycling business located in Deeside, United Kingdom, which is in Wales. The Telecycle listing in the British Metals Recycling Association (BMRA) online membership directory describes Telecycle as “recycling catalytic converters, telecoms and printed circuit boards for refining.”
The transaction, if completed, would transfer ownership of Telecycle from Lai personally to Majestic, a company which he leads and in which he owns a more than 70 percent stake.
States Majestic, “This acquisition is considered a related party transaction under the [London-based]-Aquis Stock Exchange rules. Having exercised reasonable care, skill and diligence, the directors of Majestic (excluding Peter Lai) deem the terms of the SPA to be fair and reasonable for Majestic's shareholders and an accretive acquisition for Majestic.”
Comments Lai, executive board chair and CEO of Majestic, “We are delighted to have conditionally agreed to acquire Telecycle and expand our U.K. operations. The U.K. market's commitment to sustainability and recycling makes this acquisition a crucial driver for future growth. We look forward to integrating Telecycle into Majestic and updating shareholders on our progress."
In its announcement, Majestic says the transaction is pending “delivery of a certain quantity of containers of recyclable materials by Dec. 31, 2024,” and identifies “the total consideration for the acquisition” as up to 2 million British pounds ($2.6 million), “to be satisfied in cash.”
States Majestic, “The acquisition of Telecycle aligns with Majestic’s strategic goal to expand its presence in the U.K., a market Majestic deems to present significant growth opportunities.”
On its website, Majestic lists Deeside as the home of its U.K. headquarters. The site also identifies Malaysia as the site of Majestic “processing, sorting, baling and dismantling” operations and Hong Kong as hosting “banking, logistics and administration” functions.
Continues Majestic, “Telecycle, a profitable U.K.-based recycling business, has established a trusted supply source within the U.K. and currently acts as a tolling agent for Majestic. At present, Majestic sources some recyclable material on an arm’s length basis with Telecycle, an existing affiliated company to the company.”
By acquiring Telecycle, Majestic says it will secure a steady supply of recyclable material, expand its network of suppliers and customers and “eliminate any perceived conflicts of interest, thereby strengthening its market position.”
Majestic describes the Telecycle plant as a “fully licensed and ISO-certified facility” that can help “reduce the U.K.'s supply chain [loss] of critical and precious metals, including lithium, gold, cobalt, copper and nickel.”
The Majestic website describes the company as having been founded in 2018 and refers to Lai as having “been the owner of businesses in this sector since 1994.”
Lai’s LinkedIn profile also lists him as the founder of the WSF Group Limited. That firm’s website describes WSF as “a Hong Kong-based company that buys nonferrous and precious metal-bearing scrap [for] processing at our recycling facilities located in Hong Kong, Malaysia, China and Taiwan.”
A 2019 article on the Hong Kong-based The Milllennial Source website describes WSF Group as “an early mover into the metal recycling industry,” adding, “The company was established in 1994 and grew to become a multimillion-dollar business, with nearly 200 employees across several countries.”
The website adds, “In 2017, after a restructuring and rebranding, WSF was reborn as Majestic Corp., leaving behind past adversities. Although the reset marked a new beginning for the venture, lessons learned over the previous two decades have been carried forward to today, acting as a firm foundation for the company’s new identity.”
Courtesy : recyclingtoday.com
