KUALA LUMPUR: Pecca Group Bhd, an automotive leather seat maker, is buying a majority stake in a supplier of face mask and Covid-19 test kits for RM100mil.
The company said the purchase of a 51% stake in Rentas Health Sdn Bhd from Teoh Zi Yuen, who is an executive director at Pecca, will be satisfied by RM50mil cash and the issuance of RM50mil worth of new Pecca shares.
The 11.99 million new Pecca shares will be issued at RM4.17 each.
Zi Yuen is the 26-year old daughter of Pecca's group managing director and substantial shareholder Datuk Teoh Hwa Cheng.
She will continue to own a 48.99% stake in Rentas Health after the deal is concluded.
Pecca said Rentas has provided a profit guarantee of no less than RM23mil for the financial year ending June 30, 2022 (FY2022) Rentas made a profit after tax of RM7.08mil for the first 11-month of FY2021.
“We believe the demand for masks, PPE and other covid products will be here to stay as more officials describe COVID- 19 as an endemic, similar to the likes of HIV and Hepatitis C," Pecca’s Datuk Teoh said said in a statement today.
"With this new business added into our group, we are now ready to roll out our vision for Pecca 2.0, our new growth ecosystem that will pave Pecca to new heights." he added.