KUALA LUMPUR (Sept 5): Hextar Industries Bhd (HIB), which plans to seek a transfer of its listing to the Main Market, is acquiring an office supplies firm for RM16.5 million.

The group said it has signed an agreement with the shareholders of Pacific Office (M) Sdn Bhd to acquire an 100% equity interest in the firm, with the deal expected to be completed in the fourth quarter of this year.

“Pacific Office has 33 years of experience as a leading player in the stationery and office supplies business. It has a very broad customer database nationwide that will bring added value and synergise with HIB’s existing businesses," said HIB managing director Benny Ang in a statement.

He said Pacific Office has a database of more than 3,500 active customers, making it "rich in business information for us to tap into and to leverage on to move further ahead in the market”. 

HIB is involved in the manufacturing and trading of various fertilisers, besides providing crop management solutions. It also supplies a wide range of industrial products including machinery, spare parts, conveyor belts, forklifts, industrial batteries and lighting.

HIB logged a net profit of RM21.21 million for the second quarter ended June 30, 2023 (2QFY2023), its highest quarterly profit since it was listed on the ACE Market in 2014. The group recorded a revenue of RM251.4 million for the quarter.

There are no comparative year-on-year figures as the group changed its financial year end from Aug 31 to Dec 31.

Compared to 1QFY2023, HIB’s net profit rose 3.87% from RM20.42 million although revenue decreased 6.69% from RM269.43 million on lower average selling price. Also, the application of fertilisers was affected by the Hari Raya Aidilfitri and Gawai Dayak festivals.

HIB’s share price, which has fallen over 43% year-to-date, closed flat at 44 sen on Tuesday. At this price, the group is valued at RM1.2 billion.