PETALING JAYA: Cocoa-related product manufacturer GUAN CHONG BHD has acquired the entire equity stake in Koko Budi Sdn Bhd (KBSB) to increase its overall grinding capacity to expand its business operation.
In a filing with Bursa Malaysia, Guan Chong announced that the 100% equity or 3.76 million ordinary share acquisition from Soh Bok Yew & Sons Sdn Bhd, Soh Peck Lay and Soh Chee Siong will be made for a total of RM17mil.
Following the acquisition, KBSB will become a wholly owned subsidiary of Guan Chong.
The company said that the acquisition price would be settled in RM17mil cash, of which RM4.25mil will be paid upon the execution of the sale of shares agreement (SSA). The balance will be paid within 30 days of the SSA’s stipulated conditions being fulfilled.
KBSB is a Johor-based company and is principally involved in the manufacturing, marketing and promotion of cocoa-related products such as cocoa butter, cocoa powder, cocoa cake and cocoa liquor.
“The acquisition shall allow Guan Chong and its subsidiaries to achieve organic expansion on its existing business operations by increasing its overall grinding capacity.
“After taking into consideration the synergistic benefit of the acquisition, the board believes that the prospects and future financial performance of KBSB is expected to be favourable, which would result in KBSB contributing positively to the future earnings of the Guan Chong Group and enhancing the shareholders’ value in the long term,” the company said in the filing with the stock exchange.
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