KUALA LUMPUR: Pesticide manufacturer IMASPRO Corp Bhd
plans to expand its business-to-consumer (B2C) segment (direct transactions with end-users) and tap new markets by acquiring the entire equity interest in Mosfly International Sdn Bhd (MISB) for RM26mil in cash.
In a filing with Bursa Malaysia, Imaspro said MISB, which sells mosquito coils, disinfectants and household insecticides, also has a 50% shareholding in Mosfly Vietnam Industries Co Ltd which makes insecticide, home care and personal care products.
It noted that MISB has an established business and a 52-year-old brand in Malaysian household insecticide industry.
Imaspro, whose customers are mostly in the busines-to-business sector, said the proposed acquisition would complete its business strategy into the B2C sector.
MISB has trademarks in more than 20 countries, including in most countries in the South-East Asia region, several African countries, as well as in India, Bangladesh, and Pakistan.
“These predominantly hot weather countries with many flying insects’ diseases will present excellent opportunities for Imaspro to grow its market share and size. With Imaspro’s chemical expertise, the current dengue and Zika outbreaks in most of these countries, Imaspro will be able to tap into it by introducing more new and innovative products to counter these diseases,” it said.
Imaspro said the proposed acquisition would allow it to venture into the Vietnam household insecticide market.
According to the company, Mosfly Vietnam is a market leader in household insecticide market in Vietnam and was ranked top three brand in terms of market share there.
“It has also begun to introduce new and innovating products into the market recently. Towards the end of last year, the company started introducing air freshener into the market. It has also managed to obtain a business license to import home care products into Vietnam and distribute it locally,” Imaspro added.
The proposed acquisition is expected to be completed by the second quarter of 2016.
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