KUALA LUMPUR: Shares in Ta Win Holdings Bhd gained over 4% in early trade Tuesday following its venture into the pharmaceutical industry.
The copper products manufacturer rose 4.44%, or one sen to 23.5 sen. It is currently the second most actively traded counter with 65 million shares done.
Ta Win will be acquiring a 32.5% stake in pharmaceutical company Royce Pharma Manufacturing Sdn Bhd for RM20.85mil.
The group’s maiden investment into the pharmaceutical industry was made through its wholly-owned subsidiary Ta Win Copper Biohealth Sdn Bhd (TWCB).
TWCB inked a share sale agreement with Poly Lab Sdn Bhd for the acquisition of a 22.8% or 2.74 million share stake in Royce Pharma for RM14.64mil.
It also signed a subscription agreement with Royce Pharma and the latter’s shareholders Poly Lab and Jelita Serbaneka Sdn Bhd for the subscription of 1.16 million new shares, which represent 9.8% of Royce Pharma’s enlarged share capital, at RM6.21mil.
Ta Win expects its investment in Royce Pharma to positively impact its financial performance in the future given the profit guarantee of RM10mil for the first year and RM10mil for the second year, which will recognise its proportionate share of Royce Pharma’s future profit.