KUALA LUMPUR (Nov 3): Tien Wah Press Holdings Bhd, which has successfully tendered for the acquisition of British American Tobacco (BAT) Indonesia's printing business PT Bintang Pesona Jagat (BPJ) for 304 billion rupiah (RM97.75 million), has sealed the deal for the buy today.

Its 51%-owned subsidiary Max Ease International Ltd inked a conditional sale and purchase of shares agreement with PT Bentoel Prima (PTBP) and PT Lestariputra Wirasejati (PTLW) to effect the planned acquisition.

"The proposed acquisition comes with a manufacturing and supply of packaging materials agreement," it said in a bourse filing.

Under the deal, Indonesia-listed PT Bentoel Internasional Investama Tbk will also appoint BPJ as the exclusive supplier to provide print supplies to BAT in Indonesia for six years, from Jan 1 next year.

On completion of the sale and transfer of the shares, BPJ will become a subsidiary of the Tien Wah Group.

Tien Wah is principally engaged in printing tobacco packaging and paper services. It intends to fund the acquisition via its recently-completed rights issue.

"The purchase price was arrived at on a willing-buyer willing-seller basis after taking into consideration the commercial value of the agreement and the impact on future profitability of Tien Wah," it added.

BAT Group is currently Tien Wah Group's largest customer; hence the acquisition will enable it to further expand its production and geographical footprint, while strengthening its business relationship with the BAT Group as their preferred printing partner.

"The expansion also enables us to have greater opportunity to organize our enlarged production base within the group to achieve greater operational efficiency and economies of scale," it added.

The acquisition, it said, is also in line with its strategy to continue to expand its printing and packaging business in the region, as it positions itself as a regional printer to tap into other business opportunities.

The group expects to complete the acquisition by Dec 15, 2016.

The stock closed down four sen or 1.97% at RM1.99, valuing it at RM288.04 million.