KUALA LUMPUR (Aug 27): Careplus Group Bhd (KL:CAREPLS) is expanding its footprint in Indonesia by acquiring a 9.09% stake in Indonesian glove maker PT Sintong Unigolden Glove (SUG) for RM3 million.

Careplus signed an investment and shareholders’ agreement with PT Sintong Abadi, PT Bima Sahabat Industri, and SUG, a company specialising in the production of medical gloves, on Tuesday.

According to Careplus’ filing, the group will invest RM3 million to acquire 19,600 new shares in SUG. This is in line with SUG’s RM30 million in net tangible assets.

Following the subscription, Careplus will own a 9.09% stake in SUG, alongside PT Sintong Abadi and PT Bima Sahabat Industri, each of which holds an equal 45.455% share in the company.

“By leveraging the lower labour and production costs in Indonesia, the company expects to achieve cost savings and hence, improving the company’s overall competitiveness in the market,” Careplus told Bursa Malaysia.

“In addition, with the JV partners’ local market knowledge, regulatory understanding and established networks in the Indonesian market, therefore facilitating smoother market entry and operations,” it added.

Shares of Careplus, which have fallen over 32% year-to-date, closed unchanged at 27.5 sen. This gives the glove maker a market capitalisation of RM189.21 million.