PETALING JAYA: Sunzen Biotech Bhd
is proposing to acquire the remaining 30% of its 70%-owned subsidiary Ecolite Biotech Manufacturing Sdn Bhd, and in the same pattern, the balance 30% of Ecolite subsidiary Yanming Resources Sdn Bhd.
Ecolite also already owns 70% of Yanming.
Sunzen’s acquisition of Ecolite would be worth RM18mil, to be satisfied by RM1.8mil in cash and RM16.2mil via the issuance of 54.9 million new Sunzen ordinary shares at an issue price of 29.5 sen per share.
Meanwhile, the purchase of Yanming is deemed to be worth RM6mil, to be satisfied by RM600,000 in cash and RM5.4mil via the issuance of 18.3 million new Sunzen ordinary shares at the same issue price.
The two deals are to be completed concurrently on a cash payment of RM2.4mil, equivalent to 10% of the purchase consideration to be paid to the vendors, coupled with an issuance of 73.2 million new Sunzen shares at an issue price of 29.5 sen per share to the vendors, amounting to an aggregate of RM21.6mil.
For the record, the vendors of the Ecolite deal are Koh Lee Fong, Lim Wee Chun, Fam Jian Yap and G Five Holdings Ltd; while the Yanming vendors are Lim Poh Chuw, Fam, Cai Hegui and Chua Huai Gen.
Upon completion of the deals, both Ecolite and Yanming will become wholly owned subsidiaries of Sunzen.
The proposals come with Koh, Lim and Fam agreeing to guarantee that Ecolite would achieve an audited consolidated profit after tax of RM6mil for the two financial years ending June 2025 and 2026.
In similar fashion, Lim, Fam and Cai also need to guarantee that Yanming would post an audited consolidated profit after tax of RM2mil for the two financial years ending June 2025 and 2026 as part of the deal.
Sunzen’s share price closed down one sen to 29 sen but has climbed nine sen or 45% from 20 sen since the beginning of the year.
