KPS to buy entire stake in MDS

KPS MD/CEO Ahmad Fariz says the acquisition will complement Perangsang Dinamik’s current portfolio, consisting of Toyoplas Manufacturing and CPI.

KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd (KPS) expects to enhance its profitability on an enlarged earnings base with the acquisition of a 100% stake in MDS Advance Sdn Bhd via its wholly-owned subsidiary, Perangsang Dinamik Sdn Bhd, for RM85mil.

The purchase consideration values MDS Advance within the industry benchmark in terms of enterprise value/earnings before interest, tax, depreciation and amortisation ratio of 7.9 times, which will be fully satisfied by internally generated funds, KPS said in a filing with Bursa Malaysia.