KUALA LUMPUR: Construction firm Vizione Holdings Bhd has entered into a Heads of Agreement (HoA) to acquire a 51% stake in a glove maker.
The company, in a filing with Bursa Malaysia today, said wholly owned VIP Index Sdn Bhd has proposed to purchase 2.3 million shares in SSN Medical Products Sdn Bhd from three individuals for RM5mil cash.
"The proposed acquisition is conditional and subject to a financial and legal due diligence on SSN to be undertaken by VIP to the sole satisfaction of VIP," it said.
Based in Kuala Lumpur, SSN is involved in the business of manufacturing and sale of latex and nitrile surgical as well as examination gloves.
It also manufactures condoms.
SSN has been in the business for 21 years and produces specialty gloves like long arm gloves and high risk gloves.
Presently it has nine manufacturing lines with a total capacity of over 500 million gloves and 150 million condoms per annum.
"SSN intend to expand its capacity to well over 1 billion gloves with new additional manufacturing lines to cater to demand for its products," Vizione said.
Vizione said the proposed acquisition will be funded via internally generated funds and bank borrowings.
"This Proposed Acquisition will enable the Group to participate in this profitable sector and diversify its earnings on a broader base of industries," it said.
Vizione is joining a growing number of listed companies venturing into the glove making business, seeking to profit from the surge in demand worldwide for the protective gear amid the Covid-19 pandemic.