Tex Cycle Technology proposes to buy Meridian World for RM55mil

KUALA LUMPUR: Tex Cycle Technology (M) Bhd has proposed to acquire the entire equity interest in Meridian World Sdn Bhd for RM55mil cash.

In a filing with Bursa Malaysia, Tex Cycle said it had entered into a binding term sheet with Yang Wu-Hsiung, Amia Co Ltd, Beltrax Engineering Sdn Bhd, Good Credentials Sdn Bhd, Panbright Holdings Sdn Bhd, Peninsular Accord Sdn Bhd, Scientidex Sdn Bhd, Sunrise Majusama Sdn Bhd, Wong Mei Hwa and Yang Chueh-Kuang to negotiate the detailed terms and conditions to be contained in a definitive share sale agreement for the proposed acquisition.

Meridian World is principally involved in chemical processing, the provision of waste water treatment facilities, waste recycling services and trading of industrial chemicals.

Tex Cycle said the purchase consideration will be funded via internally generated funds and/or bank borrowings.

Tex Cycle added the proposed acquisition would allow it to expand its product and service offerings to a boarder range as well as expand its geographical reach as Meridian World is primarily based in the northern region of Peninsular Malaysia.

Tex Cycle said the acquisition will allow it to increase its revenue and earnings.