KUALA LUMPUR (Aug 18): Kossan Rubber Industries Bhd (KL:KOSSAN), which is involved in the manufacturing and distribution of gloves and cleanroom products, has proposed to acquire two cleanroom product businesses for RM48.41 million.
In a bourse filing on Tuesday, Kossan said it had entered into separate agreements to acquire a 100% stake in Singapore-based Inout Enterprise Pte Ltd (IOS) and a 51% stake in Inout Enterprise (Thailand) Ltd (IOT).
Kossan will acquire IOS from five vendors — Ang Hwee Tong Matthew, Siha, Intira Lertzangar, Yong Khai Yee (Yang Kaiyi) and Heng Lee Huat — for S$15.15 million (RM48.39 million).
As for IOT, Kossan will purchase the 51% stake from La-ongsri Loetsanga for 130,000 baht (RM16,037).
IOS is principally involved in the wholesale of various cleanroom products, while IOT focuses on cleanroom consumables, including masks, gloves and wipes, as well as cleaning tools, equipment and related industrial supplies.
Kossan said the proposed acquisitions of IOS and IOT are inter-conditional, with the acquisition of IOS subject to the completion of a restructuring exercise.
Under the restructuring, IOS will acquire the remaining stake in Inout Enterprise (M) Sdn Bhd, making it a wholly-owned subsidiary of IOS, as well as a 100% stake in Greenphils Inc.
IOS will also acquire additional stakes in IOT and Cleanera HK Ltd (CEHK), which will become 49%-owned and 17.37%-owned associates of IOS, respectively.
The transaction is deemed a related-party transaction as one of the vendors is a director and shareholder of CEHK, which is currently an 82.63%-owned subsidiary of Kossan.
Kossan said IOS’ more than 30 years of experience in trading and distributing cleanroom products, coupled with its proven track record, is expected to contribute positively to the group’s future financial performance and position.
The group intends to fund the proposed acquisitions through internally generated funds. The transactions are expected to be completed by the end of the first quarter of 2027.
Shares of Kossan ended one sen or 0.9% lower at RM1.10 on Tuesday, giving the group a market capitalisation of RM2.81 billion.