Kanger buys 51% stake in building materials supplier Sung Master

Home » Kanger buys 51% stake in building materials supplier Sung Master

KUALA LUMPUR (Bernama) — Kanger International Bhd has proposed to acquire 51 per cent stake or 1.02 million shares of Sung Master Holdings Sdn Bhd for RM94.79 million.

In a filing with Bursa Malaysia today, Kanger said the company also proposed new subscription shares of 769.51 million, representing 30 per cent of the total issued shares, at the subscription price of six sen by Kuah Choon Ching.

It said Sung Master is a company engaged in sales and trading of building materials such as timber flooring, tiles, bulk cement, concrete, locksets and sanitary ware that are similar to the current business activities of Kanger which is manufacturing and trading of building materials.

“Due to similarity in business nature of both Kanger and Sung Master, the proposed acquisition will lead to expansion of its existing business activities of manufacturing and trading business and widening product offerings which are expected to enhance the revenue and earnings of Kanger moving forward,” it said.

It said the proposed subscription is the most ideal avenue to instantaneously raise funds to partially satisfy the purchase consideration for the proposed acquisition.https://sites.thestar.com.my/tsolnewsletter/default_story.aspx?s=business%2Fbusiness-news&k=corporate%20news&ku=tag%2Fcorporate%2Bnews

“It is also the most efficient avenue for funds raising as it enables the company to raise funds with relatively lower costs and expenses against other forms of financing options such as bank borrowings, which will increase the debt obligation and interest costs to the company,” it said.

It added that this would allow the company to preserve its existing cash flow for its operational purposes and for future business investment opportunities. – TheStar