Enra buys Australian specialty chemicals distributor for RM13.5m

-A +A

KUALA LUMPUR (June 13): Enra Group Bhd is acquiring International Chemicals Engineering Pty Ltd (ICE), an Australian company involved in importing and distributing specialty chemicals in Australia and New Zealand.

The acquisition price will be a cash consideration of up to A$2.9 million (RM8.7 million) and the assumption of A$1.6 million  of existing shareholders’ loans in ICE. The aggregate of these amount to A$4.5 million (RM13.5 million).

In a filing with Bursa Malaysia, ENRA said its indirect wholly-owned subsidiary ENRA Kimia (Australia) Pty Ltd is buying 70% of ICE from Christopher Johs Ulrik and 30% from Kenneth Inglis Lardner.

The acquisition is expected be completed in the second quarter of Enra’s financial year ending March 31, 2019.

“Enra Kimia is currently a major earnings contributor to the group and a significant player of specialty chemical products in Malaysia. ICE distributes a smaller portfolio of similar specialty chemicals in a different market and presents a natural expansion opportunity for Enra Kimia,” the group said.

Enra shares did not trade today. The counter closed at RM2.50 last Friday, for a market capitalisation of RM337 million.