?The proposed project, if materialised, could provide Tan Chong Motor with opportunity to expand its foothold in the automotive industry in Vietnam,? the company said in a filing with Bursa Malaysia last Friday
KUALA LUMPUR: DKSH Holdings
(Malaysia) Bhd is buying Auric Pacific (M) Sdn. Bhd from its Singapore shareholder for S$157.67mil or RM480.90mil cash consideration as it seeks to expand its services.
DKSH, which is involved in the fast moving consumer goods, said on Friday it is acquiring the company from Singapore-based Auric Pacific Group Ltd.
Auric distributes chilled and frozen products in Malaysia.
DKSH intends to fund the proposed acquisition through its own funds and bank borrowings.
“Auric is one of the established player in the distribution of chilled and frozen products and in the food services channel in Malaysia.
“The strengths of Auric are complementary to DKSH existing FMCG market expansion services,” it said.
DKSH said the purchase was in line with its horizontal integration strategy to make further strategic investments in DKSH’s market expansion services.
This represents a gateway for DKSH to further increase its product portfolio which creates a synergy effect and is expected to generate positive earnings to the company.
“As both DKSH and Auric are involved in similar business of FMCG, the proposed acquisition will create enhanced scale and synergies for DKSH through, amongst others, revenue synergies as DKSH is able to grow its FMCG business.
“In addition, DKSH will be able to acquire Auric’s business of manufacturing melange, which will create additional income stream for DKSH group of companies,” it said.
Auric Group is a Singapore incorporated and its subsidiaries are involved in a diverse range of businesses, which includes the distribution of FMCG, food manufacturing and retailing, restaurants as well as food court management.
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