Sunzen Biotech invests RM4m in Farmer International for health collaboration

SUNZEN Biotech Bhd’s subsidiary, Ecolite Biotech Manufacturing Sdn Bhd, has entered into a subscription agreement with Farmer International Holdings Sdn Bhd (FIHSB) and its existing shareholders for the proposed subscription of 100,000 new ordinary shares.

This strategic investment, totaling RM4.32 million, aims to facilitate collaborative efforts in the health and wellness sector.

FIHSB, incorporated in April 2023, is an investment holding company with three wholly-owned subsidiaries: Herbal Farmer Retail Sdn Bhd, BHH Products Sdn Bhd, and Sensei Yo Integrated Sdn Bhd.

Herbal Farmer, a recognised brand with modernised healthcare offerings, operates in key shopping malls across Kuala Lumpur, Johor, and Penang.

As part of the agreement, FIHSB and its existing shareholders provide a profit guarantee, committing to a minimum after-tax profit of RM9.6 million for the financial years 2024 to 2026.

Ecolite, as a shareholder of FIHSB, is guaranteed a minimum order commitment, fostering a mutually beneficial relationship.

Sunzen’s group MD, Teo Yek Ming, noted the shared vision of providing consumers with healthier, natural, and high-quality products.

The collaboration combines Herbal Farmer’s innovative retail model with Ecolite’s scientific research and manufacturing expertise, positioning them for significant growth.

The collaboration is seen as a strategic move by Sunzen to optimise its product supply chain, achieve more efficient production, and enhance overall competitiveness in the health and wellness market.

Retaining individual brand identities, Ecolite and Herbal Farmer aim to create a powerful synergy, expanding market share and redefining industry standards.

Its board anticipates positive outcomes and benefits for Sunzen Biotech through this dynamic collaboration. – TMR


Monday, July 10, 2017

Sunzen to buy 70% stake in Ecolite