Daibochi shareholders approve acquisition of Mega Printing & Packaging for RM125 million [PRESS RELEASE]
- Enlarged entity to expand manufacturing capacity, increase customer base, and derive synergies
- Acquisition expected to complete in third quarter of 2019 and contribute to Daibochi’s financial performance from financial year ending 31 July 2020 onwards
Melaka, Malaysia, 11 July 2019 – Leading flexible plastic packaging (FPP) manufacturer Daibochi Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) secured shareholders’ approval to acquire the entire equity of fellow FPP player Mega Printing & Packaging Sdn Bhd (MPP) for a total cash consideration of RM125 million.
Speaking at the Extraordinary General Meeting today, Daibochi Managing Director Thomas Lim said that the acquisition was opportune in positioning the Group favourably to capture FPP demand in Malaysia and abroad.
Mr. Thomas Lim (林树坤), Managing Director of Daibochi Berhad said:
“This acquisition – Daibochi’s first – opens up a myriad of opportunities for us to expand our manufacturing capacity, increase our customer base, and derive substantial synergies in the areas of technical resources, research and development (R&D), and raw material procurement.
Vitally, this acquisition sets a new base in our market share for food and beverage (F&B) packaging in the region. Daibochi’s predominantly multinational clientele would be complemented by MPP’s customers mainly comprising local players. Together, we aim to set industry benchmarks in product quality and competitiveness towards expanding our regional footprint.”
To read the full press release, please click here.
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