KUALA LUMPUR: Enra Energy Sdn Bhd has accepted a joint offer from Hextar Global Bhd and Ekopintar Sdn Bhd for the entire issued share capital of Enra Kimia Sdn Bhd for RM50mil cash.
According to a joint statement by Hextar Global and Enra, the former company and Ekopintar will acquire 49% and 51% stakes in Enra Kimia for RM24.5mil and RM25.5mil respectively.
Datuk Mazlin Md Junid, the president and group CEO of Enra, is a 50% stakeholder and director in Ekopintar, which makes the proposed divestment a related party transaction.
Mazlin did not participate in the board meeting to consider the proposed divestment, said Enra.
Enra Kimia and its subsidiaries supply specialty chemicals, catalysts and odorants, as well as provide ancillary services for these products to the oil and gas and Petrochemical industry in Malaysia, Australia and New Zealand.
Hextar Global executive director Eddie Ong Choo Meng said it would not have been easy to replicate Enra Kimia's capabilities, which have taken years to acquire.
"The proposed Enra Kimia Acquisition therefore provides us with immediate access to the Malaysian oil and gas sector as well as the necessary pool of expertise and experience to run the business successfully.
“Enra Kimia is a unique opportunity for us. In addition to being a well-established company with an exceptional track record, it is licensed to conduct business with the Petronas group of companies and oil refineries in Malaysia and also has a significant presence in Australia and New Zealand,” he said.
Enra deputy executive chairman Tan Sri Kamaluddin Abdullah Badawi added that Hextar has the capacity to support a more aggressive growth strategy for Enra Kimia and introduce further synergies to its operations.
"From Enra’s perspective, this is an opportune time to monetise this investment and allow ENRA to pursue other growth opportunities," he added.