PETALING JAYA: Glove-dipping line manufacturer HLT Global Bhd has proposed to acquire HL Rubber Industries Sdn Bhd (HLRI) for RM33 million, in a move which will see it diversify into the rubber gloves manufacturing business.
HLRI is primarily engaged in the manufacturing and trading of rubber gloves, including both natural and synthetic rubber gloves for customers in the medical, food and beverage as well as consumer industries amongst others.
In a statement yesterday, HLT said it has entered into a heads of agreement with Suntel International Co Ltd, Kan Mei Yoong and Lee Sow Yin for the proposed acquisition of 5.77 million ordinary shares, representing 55% of the issued share capital of HLRI.
The group said the purchase consideration will be satisfied via the issuance of 113.8 million new ordinary shares in HLT at an issue price of 29 sen per consideration share.
“As a company, it is only natural that we aim to establish a stronger foothold in the industry and we view this exercise as synergistic and complementary to our existing fabrication business of glove-dipping lines,” HLT’s executive director and CEO Chan Yoke Chun said.
“Exports from Malaysia accounts for a lion’s share of the global market consumption hence, we aim to leverage on this opportunity and penetrate into new markets both regionally and internationally,” he added.
Moving forward, HLT said it continues to seek opportunities in the domestic and international markets by focusing on delivering the highest quality in product and customer service.
Source: The Sun Daily