By BERNAMA / Graphic By TMR

Bioalpha Holdings Bhd’s wholly owned subsidiary, Bioalpha International Sdn Bhd, has entered into a memorandum of understanding (MoU) with North West Enterprise Sdn Bhd to acquire a stake in the latter.

MD William Hon said the proposed acquisition carries high synergistic benefits that would enable both parties to draw on each other’s capabilities to accelerate expansion.

“Through North West , we can tap into its extensive hospitality client base. This would increase our distribution network significantly, providing us instant access to the large tourist segment,” he said in a statement yesterday.

North West manufactures, trades and supplies hotel amenities, personal care products and instant beverage in sachets to establishments in Malaysia’s hospitality industry.

It has exclusive distributorship arrangement with brands such as Procter & Gamble, Livi, Etro and Malin + Goetz to distribute products to clients in the hospitality industry.

Hon said the proposed acquisition would be financed via a proposed private placement exercise, involving an issuance of 95.3 million new ordinary shares in the company, representing not more than 10% of its enlarged share capital.

Based on the indicative issue price of RM0.25 per placement share, Bioalpha is expected to raise gross proceeds of RM20.3 million, he said.