KUALA LUMPUR (Sept 25): Soon after ceasing to be a substantial shareholder of Dolphin International Bhd (KL:DOLPHIN), Asia Poly Holdings Bhd (KL:ASIAPLY) is now buying a 35% stake in Zhen Xing Plastic Sdn Bhd for RM7.5 million in cash.
Zhen Xing is a local recycling company involved in the manufacturing of depolymerised methyl methacrylate monomer (green MMA) and its related fields, the cast acrylic manufacturer's bourse filing showed.
Asia Poly’s wholly owned subsidiary AP Waste Management Sdn Bhd has entered into a subscription agreement with Zhen Xing and its shareholder Huang Yongkang for the acquisition.
Post-acquisition, AP Waste Management will hold a 35% stake in Zhen Xing, while Huang’s stake will be reduced to 15% from 23.08% previously. Another shareholder, Hua Su Acrylic Material Pte Ltd, will see its shareholding in Zhen Xing reduced to 50% from 76.92% previously.
Upon completion of the subscription, Asia Poly said it would be able to integrate Zhen Xing’s specialty in the production of green MMA.
“The subscription allows the group to create more value and improve competitiveness within the green recycled sector,” it added.
The stake acquisition will be funded by internally generated funds, said Asia Poly.
For the financial period ended July 31, 2024, Zhen Xing recorded a net loss of RM285,123 with accumulated losses of RM927,054.
Asia Poly’s share price settled unchanged at seven sen, bringing the group a market capitalisation of RM67 million.