[Borneo Post Online] Scientex offers to take over 42.41 per cent stake in Daibochi
KUALA LUMPUR: Packaging manufacturer Scientex Bhd (Scientex) has proposed to acquire a 42.41 per cent stake in Daibochi Bhd (Daibochi) for RM222.5 million to enable the former to penetrate the global market by offering high quality packaging at competitive prices.
Scientex managing director Lim Peng Jin said the total purchase consideration would be satisfied via share swap through the issuance of one new ordinary Scientex share for every 5.5 Daibochi shares held by vendors.
“The synergistic merger will create a formidable regional giant from Malaysia with extensive resources to compete globally, offering an integrated range of flexible packaging solutions to a larger client base.
“This will further extend our market reach, bringing together strong technical know-how and skilled talents to tap into the exciting growth prospects for this market segment,” he said in a statement yesterday.
Speaking at the signing of the heads of agreement between Scientex and the vendors here today, Lim said the parties agreed to enter into a conditional share sale agreement within the next two months.
He said the acquisition would enable Scientex to further expand its product portfolio and enhance its capabilities in the flexible packaging business through synergistic and complementary products, which would allow the company to better serve its global customers.
“By leveraging the respective strengths, brand names and track record of both parties, Scientex would capitalise on evolving consumer needs through enhanced collaboration with international brand owners to deliver innovative and sustainable packaging solutions to address growing environmental concerns,” he said.
He said Scientex plans to maintain Daibochi’s listing status on the main market of Bursa Malaysia Securities Bhd, and retain all the management and staff of later’s operations.
Barring any unforeseen circumstances, the proposed share sale acquisition is expected to be completed within six months from the date of execution of the conditional share sale agreement.
The proposed mandatory takeover offer is expected to be completed within two months from the date the share sale agreement becomes unconditional.
Upon completion, the exercise is expected to contribute positively towards Scientex’s earnings for the financial year ending July 31, 2019 onwards, Lim added.
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