KUALA LUMPUR, Oct 12 — Hextar Industries Bhd (HIB) has obtained its shareholders’ approval to acquire the entire equity interest in Hextar Fertilizers Ltd (HFL) from Hextar Holdings Sdn Bhd (HHSB) for RM480 million.
Following the approval, the share sale agreement entered into between HIB and HHSB on Aug 8, 2022 in relation to the acquisition has now become unconditional, HIB said in a filing with Bursa Malaysia today.
HIB group managing director Benny Ang Sui Aik said the immediate increase in the company’s production capacity to 679,000 metric tonnes per annum from the current 75,000 metric tonnes per annum provided HIB with the scale to expand its presence in the domestic market and tap the wider export markets through HFL’s strong global network.
“Our business is driven by volume. Hence, by being able to increase our capacity eightfold through the acquisition, we have significantly increased our competitiveness.
“We would also be able to tap the capital markets to fund our enlarged operations,” he said.
In view that HHSB’s shareholdings in HIB would increase to 77.3 per cent from 45.7 per cent pursuant to the issuance of the consideration shares for the acquisition, HHSB is required to extend a mandatory general offer to acquire the remaining HIB Shares not already owned by HHSB.
Following completion of the offer, HHSB will undertake an offer for sale of such number of consideration shares to ensure its continued compliance with Bursa Securities Listing Requirements. — Bernama
