KUALA LUMPUR: Oceancash Pacific Bhd
(OPB) has entered into a conditional share sale agreement (SSA) with Paragon Union Bhd to acquire Paragon Car Carpets & Components Sdn Bhd (PCCCSB) for RM13.42 million.
In a filing with Bursa Malaysia today, OPB said the proposed acquisition involves the purchase of 22.75 million ordinary shares, equivalent to a 100 per cent stake in PCCCSB, to be fully satisfied via cash.
"Upon the completion, PCCCSB shall become a wholly-owned subsidiary of OPB,” it said.
OPB said the proposed acquisition would enable the group to expand its customer base and gain direct access to some of the end-customers within the automotive industry, such as automotive vehicle manufacturers, which PCCCSB currently serves.
"It is also expected to allow the group to expand into the downstream activities of the car carpets supply chain and widen the group’s customer base within the automotive industry.
"We are leveraging PCCCSB’s business relationships with its existing customers and opportunities for cross-selling of products under the enlarged group, thereby enhancing competitiveness and positioning in the automotive parts and components market,” it said.
The group added that the proposed acquisition will not have any effect on its issued share capital and substantial shareholders’ shareholdings.
"The proposed acquisition does not involve any issuance of new ordinary shares in OPB or result in any change to the number of issued shares,” it added. - Bernama
