KUALA LUMPUR: Scientex Bhd
is partnering with Japan's leading producer of liquid and paste packaging systems, Taisei Lamick Co, Ltd to expand its market share in the region.
The packaging manufacturer and property developer said its wholly owned subsidiary Scientex Packaging Film Sdn Bhd had entered into a share sale agreement (SSA) with Taisei Lamick to acquire 8,100 ordinary
shares representing 80.2% equity interest in TLM for RM63.8mil cash consideration.
Upon completion of the SSA, Scientex will hold 80.2% equity in TLM, while Taisei Lamick will hold the remaining 19.8% equity.
Tokyo Stock Exchange-listed Taisei Lamick is involved in the manufacturing and sale of plastic films, retort pouches and pouches with zippers for automatic filling with liquids and pastes.
The company also manufactures and sells “DANGAN” auto fillers for liquids and pastes, peripheral devices and technical services.
Chief executive officer Lim Peng Jin said the partnership would enable Scientex to gain an immediate foothold into the fast-growing film business that is used in liquid and paste packaging, thus enhancing its offering of diversified and customised flexible packaging products especially in the F&B sector.
“It will also provide an opportunity for us to expand our capability into producing customised healthcare and hygiene-related packaging, and widen the range of value-added packaging solutions in the FMCG sector,” he said.
Scientex said the proposed acquisition is to be funded by internally-generated funds and/or bank borrowings and is not subject to the approval of Scientex shareholders and government authorities in Malaysia.
The proposed acquisition is expected to be completed in the second half of the year 2022, and is anticipated to contribute positively to the earnings and net assets of Scientex for the financial year ending July 31, 2023.
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