By MARK RAO / Pic By MUHD AMIN NAHARUL
Kumpulan Perangsang Selangor Bhd (KPS) has made an offer to takeover Toyoplas Manufacturing (M) Sdn Bhd (TMM) for RM311.25 million to improve its earnings and expand investments in the growing electrical and electronics (E&E) industry.
The Selangor state owned investment vehicle has entered into a share sale agreement with Toyoplas Consolidated Ltd and guarantors, Lim Lai An and Lim Hui Bian, to acquire a 100% interest in TMM.
If successful, TMM will undergo an internal reorganisation whereby it will acquire a 100% stake in associate companies, Toyoplas Holdings Pte Ltd and PT Toyoplas Manufacturing Indonesia, the latter of which will dispose of its entire 100% interest in of PT Toyoplas Technology Indonesia.
The resultant enlarged TMM group will predominately be involved in the integrated plastic injection moulding business with operations spread across seven locations in China, Malaysia and Indonesia.
TMM made RM240.89 million in revenue and a net profit of RM18.19 million in 2018, while net assets stood at RM110.9 million.
KPS added that TMM’s business is complementary to its existing core investments in the manufacturing sector.
TMM’s customers are primarily domiciled in China and Malaysia. The company is involved in the multimedia and communications and consumer appliances industries.
Thus, KPS future growth will be influenced by the growth of the E&E industry in China and Malaysia.