KUALA LUMPUR (Sept 29): Progressive Impact Corp Bhd (Picorp) is buying Mérieux NutriSciences Malaysia Sdn Bhd (MNSB), which provides chemical, microbiological and environmental related analytical testing and consultancy services for the food industry, for RM7.95 million.

US-based Merieux Nutrisciences Corp has a 51% shareholding in MNSB while Texchem Resources Bhd owns the remaining 49%.

In a filing with Bursa Malaysia on Friday, Picorp said its 59%-owned subsidiary ALS Technichem (Malaysia) Sdn Bhd (ALSM) has entered into a shares sale agreement with Merieux Nutrisciences Corp and Texchem for the acquisition. Australian Laboratory Services Pty Ltd owns another 40% stake in ALSM while ALSM director Zaid Abdullah holds 1%.

Picorp said it will fully fund the purchase consideration using ALSM's internal funds.

Based on its latest audited financial statement for the financial year ended Sept 30, 2022, MNSB recorded a net loss of RM2.66 million. The total equity attributable to the owners of the company stood at RM2.46 million.

"The acquisition is expected to contribute positively to the group's future earnings and earnings per share via the expected earnings contribution to be derived from MNSB," said Picorp.

The acquisition is not subject to the approval of the shareholders of Picorp.

At 4.31pm on Friday, Picorp shares were traded 0.5 sen or 6.25% lower at 7.5 sen, giving it a market capitalisation of RM49.35 million.