PETALING JAYA: Life Water Bhd
(LWB) is proposing to acquire a 90% stake in three Sabah-based businesses - Hung On Thong Mini Supermarket Sdn Bhd, Hung Tai Enterprise (Sabah) Sdn Bhd and Kilang Mee Ban Soon Sdn Bhd, for RM46.8mil.
In a filing with Bursa Malaysia, LWB said it had entered into a share sale agreement with six vendors to acquire the equity interests as part of its proposed acquisition.
“The proposed acquisition is expected to strengthen the group's position within the consumer products sector by expanding its presence further along the food value chain beyond its bottled water business.
“Supported by established manufacturing capabilities, recognised household brands, and an existing customer and distribution network across Sabah, Labuan, Sarawak and Brunei, the acquisition is expected to enhance revenue diversification and provide an additional platform for sustainable growth.”
LWB said the acquired businesses are expected to provide immediate earnings contribution through their established operations and proven track record, while enabling operational synergies, including improved logistics, procurement, distribution and administrative efficiencies.
“Overall, the proposed acquisition is expected to accelerate the group's long-term growth prospects within the consumer products sector.”
