Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 23): Hextar Global Bhd said its shareholders today approved the proposed acquisition of chemical derivatives, coating and related products manufacturer Nobel Group.

In a statement, the agrochemical group said it will now proceed to complete the acquisition and commence the integration of their business operations.

Hextar said Nobel Group is expected to contribute positively to its earnings from the fourth quarter ending Dec 31, 2021 onwards.

Hextar is acquiring Nobel Group, comprising Nobel Synthetic Polymer Sdn Bhd and Nobel Scientific Sdn Bhd, for RM105 million cash.

"The acquisition comes with a profit guarantee of an aggregate of RM42 million over three years which translates into an after-tax profit of RM14 million per year. This provides downside protection to Hextar's stakeholders," the group said in its statement.

Hextar executive director Datuk Eddie Ong Choo Meng said obtaining the approval of its shareholders for the acquisition is an endorsement that the group is taking the right path in its growth strategy.

"We recently completed the acquisition of the Chempro Business [comprising Chempro Technology (M) Sdn Bhd and Alpha Aim (M) Sdn Bhd] and we are looking forward to kicking off the integration of the Nobel Group as soon as possible.

"There are significant synergies and economies of scale to be reaped from the integration of these businesses and we intend to maximise the returns from such synergies," he said.

Ong said the consolidation of the Chempro Business and the Nobel Group into Hextar coupled with the pending acquisition of ENRA Kimia Sdn Bhd group of companies will mark a significant milestone in the evolution of Hextar.

Shares in Hextar closed two sen or 1.56% higher at RM1.30, giving the group a market value of RM1.71 billion. Since the beginning of the year, the stock has more than doubled from 56 sen.

Edited ByS Kanagaraju
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