KUALA LUMPUR: Scientex Bhd is buying a plastic bag maker with a factory in Klang, Selangor for RM190mil cash, as the group seeks to expand its product portfolio in the packaging industry.
The company, in a filing with Bursa Malaysia today, said it had entered into a sale and purchase agreement with Law Wan Hong and several other individuals to acquire the entire equity interest in Klang Hock Plastic Industries Sdn Bhd (KHPI).
Trading of Scientex shares was suspended today to make way for the announcement.
The stock was last traded at RM8.67 on Thursday.
“The proposed acquisition would enable the Scientex to further expand and enhance its flexible plastic packaging products for fast moving consumer goods and food and beverage sectors, and industrial and agricultural products including agricultural films products and flexitank films manufacturing,” it said in a regulatory fling today.
Scientex is involved in two business segments, namely manufacturing of flexible plastic packaging and property development.
“Upon completion of the proposed acquisition, the enlarged Scientex group expects to benefit from the increased production capacity and the larger customer base in both local and global in the manufacturing industry of flexible plastic packaging products,” it said.
According to its last audited financial statements, KHPI made a net profit of RM11mil for the year ended March 31, 2017.