UNITRADE Industries Bhd’s 51%-owned subsidiary, Intergreen Metals Sdn Bhd, has signed a share sale agreement to acquire a 51% stake in Kien San Metal Sdn Bhd (KSMSB) for RM42 million.
KSMSB specialises in metal recycling, collecting, and processing metal waste for steel manufacturers.
As part of the deal, KSMSB has provided a profit guarantee, committing to achieve a cumulative profit after tax (PAT) of RM30 million for the financial years ending March 31, 2026, to 2028.
Unitrade’s MD, Nomis Sim Siang Leng, said the acquisition is a strategic move to expand into sustainable businesses and strengthen the group’s earnings base.
KSMSB’s strong presence in East Malaysia, combined with Intergreen’s established operations in West Malaysia, will enhance Unitrade’s national footprint in the metal recycling sector.
The acquisition is expected to create synergies by integrating both companies’ operations, allowing Unitrade to leverage its expanded role to negotiate better pricing and strengthen its position in the steel supply chain.
The RM42 million acquisition will be funded through internal funds and a capital injection from Intergreen’s minority shareholders.
The transaction is expected to be completed by the second quarter of 2025. — TMR