Anzo to acquire assets for glove production for RM55m

Anzo to acquire assets for glove production for RM55m

03 Jul 2020

Anzo Holdings Bhd is acquiring assets comprising lands, buildings, machineries, equipment and vehicles from Wintrade World Sdn Bhd for RM55 million in cash, to produce medical and nitrile gloves.

In a bourse filing, the group said it had entered into a Term Sheet with Wintrade for the acquisition of the assets that are located in Manjung, Perak.

“The assets are ready to be mobilised and commissioned to produce approximately 100 million pieces of medical and nitrile gloves per month. The acquisition will be financed through a combination of internally-generated funds, capital funding and financing from financial institutions,” it said.

According to Anzo, the group had paid Wintrade’s solicitors to hold as stakeholder 2% of the purchase consideration in the amount of RM1.1 million as part payment of the acquisition. The balance of 8% deposit RM4.4 million will be paid upon signing of the definitive assets sale agreement.

It intends to finance the asset acquisition through a combination of internal funds, capital funding and financing from financial institutions. If the whole balance purchase consideration is to be financed by bank borrowings, its gearing ratio may increase to 0.35, Anzo said.

The group will convene an extraordinary general meeting to get the approval of the firm’s shareholders for the proposed acquisition.

“These assets and their capacity are expected to generate substantial profits for Anzo,” it added.

On Bursa Malaysia, Anzo shares rose 1.5 sen or 9.09% to 18 sen at press time with 301.9 million units done. Its market capitalisation stood at RM159.81 million.

Source: The Edge Markets