KUALA LUMPUR: Asia Poly Holdings Bhd has proposed to acquire a 100% stake in Keng Imports & Exports Sdn Bhd (KIESB) for RM24.01mil.
In a filing with Bursa Malaysia, Asia Poly said its wholly-owned subsidiary, Asia Poly Industrial Sdn Bhd (API) had on Jan 12, 2022 entered into a share sale agreement with 10 vendors.
KIESB has a total issued share capital of RM1.1mil. It owns an industrial land in Kapar, Klang measuring 18,364 square meters. The property is free from any encumbrances and not under any financing.
“The property is strategically located approximately 800m from the group’s existing acrylic manufacturing plant in Meru, Klang.
“The acquisition will allow the group to expand its production capacity up to 3,200 tonnes per month to meet the growing demand from overseas customers especially from the US and the Middle East,” Asia Poly said.
The acquisition is expected to contribute positively to the group’s future earnings.
“Upon completion of the acquisition, API will hold 100% of the equity interest in KIESB and in turn, KIESB will be a 100% indirectly-owned subsidiary of Asia Poly,” it said, adding that the acquisition would be financed via internally generated funds and bank borrowings.