Hextar Industries to acquire industrial solutions unit from parent

KUALA LUMPUR: Hextar Industries Bhd has inked a deal with its major shareholder Hextar Holdings Sdn Bhd to acquire 70% equity interest in industrial solutions provider Hextar Mitai Sdn Bhd for RM4.55mil cash.

In a statement, Hextar Industries said the related party transaction will give it immediate access to specialised engineering capabilities to complement its existing businesses while also leveraging the wider group's client base to achieve greater synergies.

The founder of Hextar Mitai and holder of the remaining 30% equity, Ke Tung Chen, will continue to serve as managing director of the company to ensure continuity in management, it said.

Apart from providing industrial solutions, Hextar Mitai is actively involved in environmental sustainability and waste management, and was awarded a project from United Nation Industrial Development Organisation (UNIDO) to eliminate Poly Chloribated Biphenlys (PCB) in Indonesia.

According to Hextar Industries executive director Alex Sham, Hextar Mitai partnered with Ecolsir s.r.l from Italy on this project, which destroys PCB as well as rejuvenates treated oil to be used as fresh transformer oil for electrotechnical applications (mineral insulating oils).

"We believe that the acquisition and the related environmental considerations are an essential social responsibility to achieve long-term business success," he added.