KUALA LUMPUR (May 8): Mega First Corp Bhd (MFCB) (KL:MFCB) is buying a 64% stake in CSC Agriculture Holdings Sdn Bhd, a company that is involved in plantation and the wholesale of fruits and vegetables, for RM25 million.

The group, which is involved in renewable energy and packaging, mining and packaging, said its wholly-owned Mega First Agrotech Sdn Bhd had inked a share subscription agreement for the stake buy with CSC Agriculture’s existing shareholders, namely CSC Chin Family Sdn Bhd, Chin Boon Tak, Chin Boon Ching and Chin Boon Thiam.

CSC Agriculture will become an indirect subsidiary of the group upon completion of the proposed subscription.

The group, however, did not share its rationale for the acquisition.

For the financial year ended on Dec 31, 2023 (FY2023), Mega First reported a 3.3% dip in its net profit to RM383.71 million from RM396.8 million, due to losses in joint ventures and associations, income tax penalty and higher inventory impairment.

Shares of Mega First closed six sen or 1.26% higher to RM4.84 on Wednesday's, valuing the group at RM4.78 billion. The counter has gained over 30% year to date.