Rubberex to venture into healthcare with Reszon acquisition

RUBBEREX Corp (M) Bhd has proposed to acquire Reszon Diagnostics International Sdn Bhd for a total consideration of up to RM180 million.

The glove manufacturer said it has entered into a conditional share sale agreement with Law Eng Lim and Revongen Corp Sdn Bhd to acquire 500,000 ordinary shares in Reszon.

Following the acquisition, the company intends to diversify into the healthcare sector and related businesses and proposes to change its name to Hextar Healthcare Bhd, it said in a filing with Bursa Malaysia today.

Rubberex ED Goh Hsu-Ming said the group’s progression into the healthcare sector — specifically in the manufacturing of medical devices such as test kits — is complementary to its existing glove business.

“We will be able to offer a wider range of products to the market and provide an alternative income-generating source besides personal protective equipment,” he said.

Rubberex said the purchase consideration would be satisfied via a combination of cash and new ordinary shares and would be subject to an annual profit guarantee of RM50 million for each of the financial years 2022 and 2023. — Bernama