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KUALA LUMPUR (Dec 1): Vizione Holdings Bhd will acquire 51% of a Malaysian manufacturer of medical supplies, medical products, disposable medical supplies and medical devices, which also makes surgical gloves, for RM5 million.
In a stock presentation, the construction and engineering company announced that its wholly-owned unit VIP Index Sdn Bhd had signed a share sale agreement with Ang Teck Leong, Lim Kiat Yee and Ravendran Uthrapathy of SSN Medical Products Sdn Bhd for 2 , 31 million shares or 51% stake.
The 51% stake will be funded through internally generated Vizione funds.
The deal has a profit guarantee, where SSN must ensure that it makes a profit before tax (PBT) of not less than RM15 million for the financial year ending December 31, 2021 (FY21).
“The proposed acquisition is part of the group’s expansion and is expected to provide a steady stream of income to the group in the financial years ahead. It will further improve the financial performance of the group, ”said Vizione, explaining the reason for the acquisition.
In a separate statement, Vizione Managing Director Datuk Ng Aun Hooi said that demand for gloves had remained strong due to the Covid-19 pandemic.
“Our goal is to triple our glove production volume from the current 500 million pieces to 1.6 billion pieces per year in the next 18 months.
“We believe that even after a vaccine is on the market, the demand for gloves will remain strong and high due to widespread health awareness globally, in addition to the increased use of gloves in the medical field,” Ng said.
He noted that current customers will account for about half of SSN’s current and future production capacity, with the balance reserved for spot orders with higher profit margins.
Ng said SSN’s niche within the sector is the production of specialty gloves, such as elbow-length latex medical gloves, gloves for gynecological use and gloves for chemotherapy use. In addition to serving as an original equipment manufacturer (OEM), SSN also has its own brand, namely “Hanser”.
“About 80% of our current production is exported abroad, mainly to the United States, Germany, China and other European countries. We are excited about SSN’s prospect and believe that we can unlock its full potential by leveraging it with experienced business management, strong financing capabilities and a strategic growth plan, ”said Ng.
Vizione signed a hierarchy agreement (HoA) with Ang, Lim and Ravendran in September to acquire the 51% stake in SSN.
Vizione’s shares were up 4.71% or two sen to 44.5 sen at the close of the market at noon today, valued at RM 350.89 million. He saw 11.32 million actions taken.
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