Unitrade eyes 51% stake in metal recycling firm Intergreen Metals

KUALA LUMPUR: Unitrade Industries Bhd is eyeing a 51 per cent stake in metal recycler Intergreen Metals Sdn Bhd (IMSB) to expand its building material wholesale and distribution business.

Unitrade, which also makes pre-insulated pipes, said it had entered into a heads of agreement with Intergreen Holdings Sdn Bhd, Intergreen Corporation (M) Sdn Bhd and Pong Wing Seng to negotiate the acquisition of the stake in IMSB for an indicative price of RM66.3 million.

"The parties have agreed to negotiate and finalise the terms of the (definitive) share sale agreement, including assessing and deciding on the most appropriate structure and form of the proposed acquisition,” it said in a filing with Bursa Malaysia today.

In a press statement, Unitrade said the proposed acquisition would come with a profit guarantee to be mutually agreed on.

Headquartered in Petaling Jaya, Selangor, IMSB was described as one of the leading metal waste recycling firms in Malaysia with 20 years of operating track record, having first established back in 2003.

IMSB is principally involved in the metal recycling business, specialising in collecting and processing metal waste to be recycled into input feedstock for steel manufacturers.

Unitrade managing director Nomis Sim Siang Leng said the proposed purchase would mark the group’s entry into the metal recycling business.

"This is a strategic, complementary, and synergistic move to our core business in building materials wholesaling and distribution. Under an enlarged entity that is supported by our professional management and financial muscles, not to mention cost savings, I am confident we can add a lot more value to steel mill companies and the steel industry as a whole,” he said.

Separately, Unitrade said, it had also entered into a conditional share sale agreement on July 25 to acquire 60 per cent equity interest in Winnson Marketing Sdn Bhd for RM2.16 million in cash.

"Winnson specialises in the sale and distribution of hydraulic hoses, couplings, engineering hardware and related parts, which widens Unitrade's product portfolio. Furthermore, Winnson’s distribution of Molok, a renowned brand of semi-underground waste management products from Europe, also opens new doors for Unitrade’s entrance into the sustainable waste management market,” it added. - Bernama