KUALA LUMPUR (Jan 22): Mega First Corp Bhd (KL:MFCB) is to acquire an additional 12.5% stake in packaging film subsidiary Stenta Films (M) Sdn Bhd for RM33.097 million in cash.
Mega First, which already owns a 75% stake in Stenta, signed an agreement to acquire the additional shares from PT Argha Karya Prima Industry Tbk, Rentak Rimbun Sdn Bhd, Wong Kok Hwa and Ngoei Boon Liong, according to a bourse filing on Thursday.
The higher stake in Stenta will allow the company to “secure stronger financial and strategic control over a profitable and strategically important business line, while positioning for growth in the packaging and industrial market”, Mega First said.
Mega First initially acquired its 75% stake in Stenta, which manufactures and sells specialty films, back in 2021 under a 99.33-sen-per-share offer.
Stenta exports its products used in food packaging and as seals, labels and adhesive tapes across Asia, the Middle East, Africa, South America and Europe from three factories in Bandar Baru Bangi, Selangor, according to its website.
The latest deal is expected to be completed next month, Mega First said.
The price tag of RM33.097 million, or RM1.283 per share, is the agreed exit price as set out in a put option agreement to Stenta's minority shareholders. The put option agreement was terminated following the share purchase agreement.
Mega First operates renewable energy, packaging and lime product manufacturing (resources) businesses. Stenta together with unit Hexachase Corp Sdn Bhd make up the packaging division.
For the latest nine months ended Sept 30, 2025, the group's net profit dropped 15.4% to RM268.47 million, despite a 4.7% edge up in revenue to RM1.07 billion.
The renewable energy division, which formed the bulk of earnings, saw a moderate improvement, but was more than offset by drops in contribution from the packaging and resources divisions.
The packaging division saw revenue growth, but earnings was pressured by industry overcapacity, intensified price competition, negative currency effects on US dollar exports, and sub-optimal production capacity utilisation following a recent plant expansion.
Margins are expected to remain under pressure, Mega First noted, but the division will focus on customer diversification, optimising plant utilisation and operational efficiency.
Shares of Mega First ended one sen or 0.29% lower at RM3.48 on Thursday, valuing the group at RM3.44 billion.