by S BIRRUNTHA / graphic by TMR
CAR leather upholstery maker Pecca Group Bhd has acquired 51% equity interest in Rentas Health Sdn Bhd as part of its diversification into the healthcare-related business.
In a filing to Bursa Malaysia yesterday, Pecca stated the proposed acquisition at RM100 million which will be satisfied through a combination of cash and issuance of new ordinary shares in Pecca to the vendor, Teoh Zi Yuen.
Rentas Health will become a 51%-owned subsidiary of Pecca.
Pecca group MD Datuk Teoh Hwa Cheng acknowledged business conditions have significantly changed because of the Covid-19 pandemic. He noted the group saw an immediate need to embrace new ways of doing business in order to ensure it remains relevant in the new business environment.
“This dynamism and agility led us to the diversification into the healthcare business which we believe would be the business of the future.
“There is a profit guarantee of no less than RM23 million on Rentas for the financial year ending June 30, 2022, and contribute positively to our bottom-line,” he said in a statement yesterday.