PETALING JAYA: Karex Bhd has proposed to make Global Protection Corp (GP) its wholly owned subsidiary by acquiring the remaining 30% stake in the US-based condom maker that it does not already own.
In a filing with Bursa Malaysia, the Malaysian condom manufacturer said it was looking to buy the additional 30% stake in GP for RM42.3mil to be satisfied entirely via the issuance of up to 82.93 million shares in Karex at an issue price to be determined later.
Karex said the proposed acquisition was in line with the group’s strategy to expand its own brand manufacturing business, noting that GP, as a subsidiary of Karex, had been contributing profits to the group in the financial years ended June 30,2018 to 2020.
“Through GP, which will be a wholly-owned subsidiary of Karex upon completion of the proposed acquisition, Karex group will be able to fully benefit from the manufacturing and distribution of GP products, which will in turn further increase Karex group’s market share at the international forefront in the sexual wellness business by leveraging on GP products.
“In view of this, the board expects the proposed acquisition to continue to contribute positively to the group’s future earnings, ” it added.
Karex said the proposed acquisition was expected to be completed by the end of this year.