Muda buys 60% stake in corrugated carton maker

KUALA LUMPUR: Muda Holdings Bhd has entered into a deal to acquire a majority stake in a corrugated carton maker for RM15mil.

The move, Muda told the stock exchange today, was part of its strategy to further expand its corrugated carton business and to increase consumption of the group’s industrial grade paper.

Muda wholly-owned subsidiary, Federal Packages Sdn Bhd on Wednesday, entered into a Share Sale and Purchase Agreement (SPA) to acquire 60% equity interest in Quantum Total Packages Sdn Bhd (QT) from two individuals - Lee Joo Keat and Yu Shan Nee for RM15mil.

QT has a corrugated carton factory in Parit Buntar, Perak, The purchase price, Muda said, was based on QT's audited net asset value of RM12.6mil as at end of 2019 and its projected five years profit of RM15mil.