Samchem Holdings Berhad, an industrial chemicals distributor with supply chain solutions announced last Friday that it has completed the acquisition of its Malaysian subsidiary SamchemSphere Export Sdn Bhd (SESB).
According to the Bursa filing, the acquisition involves the purchase of the remaining 30% equity stake for RM4.19 million (about US$976K) from Singaporean businessman and SESB director Dennis Ho Chin Hye. The transaction is said to be funded by internal funds with no liabilities assumed.
SESB is primarily involved in the export of intermediate and specialty chemicals. This transaction will make SESB, in which Samchem’s founder and executive chairman Ng Thin Poh is also a director, a wholly unit of the Samchem group.
In a separate filing, the company’s subsidiary Samchem Sphere Export Sdn Bhd (SESB) has also offloaded 167,500 shares valued at RM2.92 million (about US$680K) in its Vietnamese unit SamchemSphere Joint Stock Company (SCSJSC) to Dennis Ho.
This will reduce the company’s holding to 63.25% of the total issued and share capital of SCSJSC, which was launched in order to penetrate the Vietnamese market.
Samchem ventured into Vietnam in 2007 with a sales office in Ho Chi Minh City, South of Vietnam, and then converted into a joint stock company in 2014. It claims itself as one of the only three major petrochemical distributors in Vietnam.
“There is no impact on the share capital and substantial shareholder’s shareholdings in the company as the disposals were cash transactions,” Samchem Holdings explained.
Samchem’s share price rose 1.27% today to close at 79.5 sen with a total of 282,300 shares traded, giving it a market capitalization of RM216 million.
This news is published on Reuters.