PUTRAJAYA (Dec 19): Mieco Chipboard Bhd said it is currently in the midst of discussions with players in the plantation and timber industry for potential collaborations.

"Yes, discussions [with plantation and timber companies] are ongoing. There might be something up soon, but not at this juncture as nothing is concrete," its executive director Keith Ng Wei Ping told reporters after the company's extraordinary general meeting (EGM) held here today.

Particleboards manufactured by the group use mainly by-products of plantation wood, especially rubberwood, as one of its main sources.

Ng stressed that the group is not looking to diversify its business, but to expand aggressively on its capacity while exploring opportunities overseas where it sees fit.

Currently, Mieco holds approximately 55% to 60% share in the local particleboard market. The acquisition approved by its shareholders today is expected to add another 10% to the group's share, Ng said.

At the EGM, Mieco received 99.99% approval for its acquisition of SYF Resources Bhd's chipboard and medium-density fibreboard maker Great Platform Sdn Bhd, for some RM58.58 million.

The price tag comprises RM7.06 million as consideration for the purchase, with RM51.53 million being the liabilities of Great Platform to SYF that Mieco is assuming under the deal.

The deal — expected to be completed in first quarter (1Q) of the next financial year ending Dec 31, 2018 (FY18) — will show immediate contribution starting 2QFY18, said Ng.

At 11.42am, Mieco fell 3.53% or 3 sen to 82 sen with 2.22 million shares done.