KUALA LUMPUR (April 25): Imaspro Corporation Bhd (Imaspro) has entered into a share sale agreement with Mosfly International Sdn Bhd (MISB)’s shareholders to acquire 16,516,500 ordinary shares of RM1.00 each, representing the entire equity interest in the share capital of MISB for a total cash consideration of RM26 million. Upon the completion of the proposed acquisition, MISB will become a wholly-owned subsidiary of Imaspro.

The purchase consideration will be satisfied by internally-generated funds and bank borrowings. The exact mix of internally generated funds and bank borrowings will be decided by the management at a later date.

MISB is involved in trading of mosquito coils, disinfectants and household insecticides, and currently has a 50% shareholding company, namely Mosfly Vietnam Industries Co. Ltd (Mosfly Vietnam) in Vietnam. The principal activity of Mosfly Vietnam is manufacturing and trading of insecticide, home care and personal care products. As of Dec 31, 2015, MISB group’s net assets was RM3,818,208 and loss after tax for the year was RM429,768, and its accumulated losses carried forward was RM12,698,292.

The proposed acquisition will complete Imaspro's business strategy in entering the business to consumer (B2C) sector. Currently, Imaspro customers are mostly business to business (B2B) sector. MISB's business in the chemical industry also falls within the strategic fit of Imaspro’s strategy to be a leader in the chemical industry.

In a filing with Bursa, it said, “The proposed acquisition will provide Imaspro foray into Vietnam household insecticide market. MISB, through its 50% shareholding company in Vietnam, is a market leader in household insecticide market in Vietnam and was ranked top 3 brand in terms of market share in Vietnam, which is expected to enhance Imaspro profitability.

“It has also begun to introduce new and innovating products into the market recently. Towards the end of last year, the company started introducing air fresheners into the market. It has also managed to obtain a business license to import home care products into Vietnam and distribute it locally. The total market share for home care products in Vietnam is estimated to be around RM5 billion in 2016.”

The proposed acquisition is expected to be completed by the second quarter of 2016.

As of closing today, Imaspro traded 4.37% higher at RM2.15, with 757,300 shares exchanging hands.