PETALING JAYA: Kumpulan Powernet Bhd (Kpower) is making a foray into the logistics business with its proposed acquisition of a 51% stake in chemical and gas logistic transportation and forwarding services company, Chemtrax Sdn Bhd, for RM10mil cash.
In its filing with Bursa Malaysia yesterday, the energy company said it had entered into a share sale agreement with Sabaka Group Sdn Bhd for the proposed acquisition, expected to be completed by the second quarter of 2021.
KPower group managing director Mustakim Mat Nun said the proposed acquisition was consistent with the company’s strategy to venture into the logistics segment upon the emergence of new shareholders.
“Through this acquisition, we can immediately leverage on Chemtrax’s decades of experience, expertise and its existing network with multinational companies to further expand and complement KPower’s and its major shareholders’ activities, ” he said.
The purchase consideration would be financed through internally generated funds and/or bank borrowings. Chemtrax has logistics facilities with depots and yards in Pasir Gudang and Simpang Renggam, Johor and Kuantan, Pahang.
Founded in 1998, the company has over 22 years of experiences handling and specialises in transportation of hazardous materials and also specific materials used in nitrile gloves manufacturing between Malaysia and Singapore.
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