Hextar Industries Bhd (HIB) has entered into a share sale agreement with Hextar Holdings Sdn Bhd to acquire 70% equity interest of Hextar Mitai Sdn Bhd (HMT) for a cash consideration of RM4.55 million to expand its industrial products division.
In a statement, HIB said the consideration for the acquisition represents 70% of the net asset value of HMT based on the last audited financial statement as of 31 December 2022 of RM6.5 million.
HIB group managing director Benny Ang said that HMT serves a wide range of industries which includes the oil and gas (O&G) sector, food and beverage (F&B), aerospace and amusement parks.
“It has a track record of over 15 years in successfully completing projects. With the acquisition, HIB group will have immediate access to specialized engineering capabilities to complement our existing businesses.
“We will also be able to leverage on the wider group’s client base to achieve greater synergies. HMT founder Ke Tung Chen will continue to serve as HMT managing director thus ensuring continuity in management.
“He also holds the remaining 30% equity interest in HMT,” Ang said.
HIB executive director Alex Sham added HMT is also actively involved in environmental sustainability and waste management including being awarded a project from United Nation Industrial Development Organisation (UNIDO) to eliminate Poly Chloribated Biphenlys (PCB) in Indonesia.
“HMT partnered with Ecolsir s.r.l from Italy on this project which destroys PCB as well as rejuvenates treated oil to be used as fresh transformer oil for electrotechnical applications (mineral insulating oils).
“We believe that the acquisition and the related environmental considerations are an essential social responsibility to achieve long-term business success.”
