PETALING JAYA: MCE Holdings Bhd
will be able to reduce reliance on external suppliers and mitigate supply disruptions of key inputs, after its joint-venture firm recently proposed to acquire a controlling stake in a plastic injection company.
With an 80% equity interest in FP Project Enterprise Sdn Bhd (FPE), MCE will enjoy stronger supply security, enhanced cost efficiency and a new earnings stream, stated Hong Leong Investment Bank Research.
On April 9, MCE announced that its 50%-owned subsidiary Eagle MCE Technologies (M) Sdn Bhd will acquire an additional 50% equity interest in FPE for RM1.9mil.
Concurrently, Eagle MCE will subscribe for 750,000 new shares at RM3.70 per share, valued at RM2.78mil or at an agreed price based on FPE’s latest net assets at the point of issuance.
Following the share subscription, Eagle MCE will hold one million shares out of a total enlarged share base of 1.25 million shares, translating to an 80% effective stake in FPE.
FPE is a plastic injection and tooling fabrication manufacturing company.
The acquisition is expected to be completed by the fourth quarter of financial year 2026.
Prior to the acquisition, FPE was an established key supplier to MCE. Hence, MCE is already familiar with its product quality and management capabilities.
