KUALA LUMPUR: Techbond Group Bhd
has entered into a conditional share sale agreement with Chemquest Sdn Bhd to acquire 13.94 million ordinary shares, representing 99.57 per cent equity interest in Malayan Adhesives and Chemicals Sdn Bhd (MAC) for RM57.0 million cash.
In a filing with Bursa Malaysia today, Techbond said it also intended to make several offers to acquire the remaining 0.43 per cent equity interest in MAC which is held by minority shareholders at about RM4.089 per share.
However, to date, there is no definitive agreement entered into between the company and the minority shareholders for the proposed acquisition of the remaining 0.43 per cent equity interest in MAC.
MAC is involved in the manufacturing and marketing of adhesives, resins, additives, formaldehyde, and phenoset microspheres.
Techbond said the acquisition was in line with the group's long-term strategy to expand its products and geographical reach, which in turn is expected to enhance the Group’s standing as an adhesive and sealant manufacturer globally.
"The acquisition is expected to provide additional revenue and profit for the enlarged Techbond group, where it would be able to leverage MAC’s existing business to broaden its range of products.
"Techbond is also able to capitalise on MAC’s existing distribution networks and customer base in the manufacturing industry to cross-sell its existing adhesive products,” it said. - Bernama
