Scientex Berhad entered into a heads of agreement to acquire 42.5% stake in Daibochi Berhad from a group of shareholders for approximately MYR 220 million.
November 13, 2018
Share
Scientex Berhad (KLSE:SCIENTX) entered into a heads of agreement to acquire 42.5% stake in Daibochi Berhad (KLSE:DAIBOCI) from a group of shareholders for approximately MYR 220 million on November 14, 2018. A conditional share sale agreement will be entered into two months from date of heads of agreement. Scientex Berhad entered into a share purchase agreement to acquire 42.5% stake in Daibochi Berhad from a group of shareholders for approximately MYR 220 million on December 10, 2018. Pursuant to the terms of the transaction, Scientex Berhad will acquire 139.1 million shares in Daibochi and issue 25.3 million new shares as consideration. The proposed acquisition will be satisfied entirely via a share exchange of 1 Scientex share for every 5.5 Daibochi shares.
Completion is subject to a conditional share sale agreement, Scientex shareholders' approval, approval from Bursa Malaysia Securities Berhad for the listing of and quotation for consideration shares, the approval of any relevant authorities and/or third parties (e.g. the Ministry of International Trade and Industry or the Malaysian Investment Development Authority) and the completion of a due diligence on Daibochi. As of January 14, 2019, Bursa Malaysia Securities Berhad approved the listing consideration shares. On January 18, 2019, the Board of Directors of Scientex Berhad recommended the shareholders to vote in favor of the transaction. Extraordinary general meeting of the shareholders of Scientex Berhad will be held on February 11, 2019. Shareholders of Scientex Berhad unanimously approved the transaction on February 11, 2019 and transaction has become unconditional. The transaction is expected to complete by the second quarter of 2019. RHB Investment Bank Berhad acted as a financial adviser for Scientex.
Scientex Berhad is a manufacturer in flexible plastic packaging and a developer of affordable homes in Malaysia. The Company's segments include Packaging and Property development. The Packaging segment is engaged in the business of manufacturing, selling, and marketing of various flexible plastic packaging products, which can be categorized into industrial and consumer-based packaging products. The Property development segment is engaged in the business of constructing and developing affordable housing in Peninsular Malaysia. Its industrial packaging product range includes stretch film, PP strapping band, stretch & shrink hood, shrink film, agricultural film and PE flex tanks tubing. Its consumer packaging product range includes PE lamination base film, metallized film, general film, printed film (roll form), barrier film, BOPP film, CPP film and Wicket Bags. Its property arm has township development projects in Pasir Gudang, Kulai, Skudai, Senai, Ayer Keroh and Pulai, among others.
Scientex Berhad entered into a heads of agreement to acquire 42.5% stake in Daibochi Berhad from a group of shareholders for approximately MYR 220 million.
SCIENTEX 
