PETALING JAYA: Hextar Global Bhd
has entered into conditional share sale agreements with Hextar Industries Bhd (HIB) and Hextar Fertiliser Group Sdn Bhd to acquire the entire equity interests in PK Fert Sdn Bhd (PKFT), PK Fertilizers Sdn Bhd (PKF) and Hextar Fert Sdn Bhd (HFT) for RM120mil.
In a filing with Bursa Malaysia, the agrochemical company said PKF and HFT are involved in the manufacturing, formulation, distribution and trading of a wide range of fertilisers.
“PKF’s principal markets are Malaysia, Indonesia and Australia, while HFT’s principal markets are Malaysia, Myanmar and Mauritius.
“Both PKF and HFT supply straight, mixture and compound fertilisers to corporate plantations, as well as small and medium estate planters and farmers for agricultural purposes.”
PKFT is principally involved in the marketing and distribution of fertilisers and serves as a procurement centre for PKF.
Hextar said the proposed acquisitions represent a strategic extension of Hextar’s agriculture platform with the inclusion of the fertiliser business as a new business line within the group to complement Hextar’s existing agrochemical operations.
“Fertilisers and agrochemicals serve a similar client base and the proposed acquisitions are expected to create synergies across customer reach, distribution and operational efficiency.
“While the fertiliser business constitutes a proposed diversification under the Main Market Listing Requirements of Bursa Malaysia, the board views the business as closely aligned with, and complementary to, its existing agrochemicals business.”
Hextar said it believes that this approach supports the group’s long-term objective of building a scalable and sustainable agriculture platform through disciplined expansion into adjacent segments.
“In view of the related party nature of the transaction, the board has considered the operational scope of the fertiliser businesses of both parties following the proposed acquisition.
“The fertiliser operations of Hextar and HIB are expected to continue to be conducted in their respective existing geographical markets, namely Peninsular Malaysia and export markets for Hextar, and East Malaysia for HIB.”
