KUALA LUMPUR: Tex Cycle Technology (M) Bhd
has proposed to acquire the entire equity interest in Meridian World Sdn Bhd for RM55mil cash.
In a filing with Bursa Malaysia, Tex Cycle said it entered into a binding term sheet (TS) with Yang Wu-Hsiung, Amia Co Ltd, Beltrax Engineering Sdn Bhd, Good Credentials Sdn Bhd, Panbright Holdings Sdn Bhd, Peninsular Accord Sdn Bhd, Scientidex Sdn Bhd, Sunrise Majusama Sdn Bhd, Wong Mei Hwa and Yang Chueh-Kuang to negotiate the detailed terms and conditions to be contained in a definitive share sale agreement (SSA) for the proposed acquisition.
Upon completion of the proposed acquisition, Meridian World will become a wholly-owned subsidiary of the company.
Meridian World is principally involved in chemical processing, provision of waste water treatment facilities, waste recycling services and trading of industrial chemicals.
Tex Cycle said the purchase consideration will be funded via internally generated funds and/or bank borrowings.
It said the proposed acquisition allows Tex Cycle to expand its product and service offerings to a boarder range as well as expand its geographical reach as Meridian World is primarily based in the northern region of Peninsular.
“In addition, Tex Cycle believes that the proposed acquisition will allow the company to increase its revenue and earnings and grow additional recurring income stream to enhance Tex Cycle's profitability and shareholders value, which in turn will provide better earnings visibility over the long term to strengthen the financial position of the company,” it said.
