KUALA LUMPUR: Unitrade Industries Bhd
’s 51%-owned subsidiary, Intergreen Metals Sdn Bhd has entered into a share sale agreement (SSA) with Hong Ching Chung (vendor) to acquire 51% equity interest in Kien San Metal Sdn Bhd (KSMSB) for RM42mil.
KSMSB, established in 1993, is involved in metal recycling, collecting and processing metal waste for use as feedstock by steel manufacturers.
In a filing with Bursa Malaysia, Unitrade said proposed acquisition also entails a profit guarantee, in which KSMSB shall achieve an aggregate profit after tax (PAT) totalling RM30mil over financial year ending March 31, 2026 (FY26) to FY28.
Managing director Nomis Sim Siang Leng said the proposed acquisition was a strategic step to expand its involvement in sustainable businesses, particularly metal recycling, to enhance our earnings base.
“KSMSB, a key player with a prominent presence in the metal recycling industry in East Malaysia, complements Intergreen’s operations and strong presence in West Malaysia.
“By combining these strengths, our group is well-positioned to enhance our national foothold in the metal recycling industry and accelerate growth in this segment,” he said in a statement.
“Importantly, this initiative not only supports market expansion but also strengthens our role in the upstream value chain. As recyclable ferrous metal is a raw material in steel production, the proposed acquisition is synergistic with our core building materials wholesale distribution business, especially for steel-based products.
“With Intergreen and KSMSB, we can both supply metal waste to and purchase steel products from steel product manufacturers. This allows us to leverage our expanded role to negotiate more favourable pricing from both upstream and downstream perspectives,” Sim added.
The proposed acquisition will be funded by the group’s internal funds and a capital injection from Intergreen's minority shareholders.
The exercise is expected to be completed by the first quarter of FY26 (second quarter of 2025).
