KUALA LUMPUR: State owned Kumpulan Perangsang Selangor Bhd (KPS) is buying a 100% stake in plastic injection moulding firm Toyoplas Manufacturing (M) Sdn Bhd for RM311.25mil cash.
Toyoplas is an integrated player with mould fabrication, precision injection moulding and assembly operations across seven locations in China, Malaysia and Indonesia, Perangsang Selangor said in a filing with Bursa Malaysia today.
The Toyoplas group of companies made a combined profit after tax of US$8.66mil (RM36.2mil) in financial year ended Dec 31, 2018.
Perangsang Selangor said Toyoplas' consistent past financial performance is expected to generate "sustainable return" for the company.
"As the manufacturing sector is one of Perangsang Selangor’s core investment sectors, the board believes that the proposed acquisition presents an opportunity to expand its manufacturing sector specifically in plastic injection moulding," it said.