PORT KLANG (Dec 17): Scientex Bhd (KL:SCIENTX) is open to acquisitions, particularly outside Malaysia, as part of its strategy to expand market share amid limited options at home.
After years of consolidating locally, Scientex will have to look abroad in Southeast Asia and East Asia, its executive director of corporate planning Jesselyn Chang told reporters following Scientex’s annual general meeting on Wednesday. However, there are no deals on the table at the moment.
“We have been acquiring Malaysian companies and there are not [many] choices here anymore,” she said.
Latest acquisitions include a 70% stake in Hiro Food Packages Manufacturing Sdn Bhd in 2024 for RM37.8 million. In 2022, Scientex acquired an 80.2% equity interest in Taisei Lamick Malaysia Sdn Bhd for RM63.8 million. Both deals boosted its food packaging business.
Scientex currently operates 18 manufacturing facilities across Malaysia, Vietnam and the US, supported by 23 research and development facilities, technical centres and laboratories. The company exports 60% to 70% of its output to more than 60 countries worldwide.
The company may also consider acquisitions in the US, where it already operates a manufacturing plant in Phoenix that caters to the American market, Chang said.
“With the tariff situation, we see the opportunity that we might want to set up locally there and expand, maybe in another area, East Coast, those are the possibilities that we are exploring,” she said.
Privatisation on track
The privatisation of Scientex Packaging (Ayer Keroh) Bhd (KL:SCIPACK) is on track for completion by March 2026, Chang said.
The move would leave the group with a single listed entity, providing greater operational, production and financial flexibility, she said, noting the frequent need for shareholder approvals for related party transactions between the two listed companies.
In September, Scientex proposed to privatise Scientex Packaging via a selective capital repayment at RM1.50 per share. Scientex had previously attempted to take full control of Scientex Packaging in 2021, but managed to raise its stake to 72% — short of the 90% needed to delist the company.
Scientex acquired a 42% stake in the unit formerly known as Daibochi Bhd for RM222.5 million in February 2019.