Tex Cycle CEO Gary Dass Anthony Francis
KUALA LUMPUR: Tex Cycle Technology (M) Bhd
has proposed to acquire a 60% stake in Safety & Environmental Laboratory Sdn Bhd (SEL) for RM8.4mil to enhance its environmental testing and compliance services.
In a filing with Bursa Malaysia, the waste management and recycling solutions provider said it entered into a term sheet with Kaliswaran Palanisamy to acquire 450,000 ordinary shares representing 60% of equity interest in SEL.
The proposed acquisition allows Tex Cycle to secure a profit guarantee from SEL with an audited profit after taxation (PAT) not to be less than RM2mil for each of the financial years ended 2024 and 2025.
Additionally, SEL guarantees a net tangible asset value not less than RM4.4mil at the completion date.
Group chief executive officer Gary Dass Anthony Francis said: "We are looking forward to this strategic acquisition, which introduces laboratory testing services into our portfolio, opening up extensive new business opportunities for Tex Cycle.”
“Integrating SEL’s expertise and services into our operations allows us to offer comprehensive environmental, health, and safety solutions. This expansion not only strengthens our position in the market but also aligns with our strategic goals of enhancing service diversity and operational excellence, ensuring we continue to meet the evolving needs of our clients."
