Hextar Global executes RM50 mil financing facility to fund Nobel Group buy for its specialty chemicals' venture

Hextar Global executes RM50 mil financing facility to fund Nobel Group buy for its specialty chemicals' venture
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KUALA LUMPUR (Sept 27): Hextar Global Bhd has executed an RM50 million financing facility from HSBC Amanah Malaysia Bhd to finance its purchase of Nobel Synthetic Polymer Sdn Bhd and Nobel Scientific Sdn Bhd, collectively known as the Nobel Group, which manufactures and supplies chemical derivatives, coating, and related products.

In a stock exchange filing, the agrochemical company said the facility is expected to increase its consolidated gearing from 0.52 times to 1.21 times. The facility will be secured by way of corporate guarantee by its wholly-owned Hextar Chemicals Sdn Bhd.

On Thursday (Sept 23), Hextar Global’s shareholders approved of its proposed acquisition of the Nobel Group.

“Following the receipt of the approval from shareholders, Hextar will now proceed to complete the acquisition of the Nobel Group and commence the integration of its business operations into the Hextar Group,” said Hextar Global.

Nobel Group is expected to contribute positively to the group's earnings for the fourth quarter ending Dec 31, 2021 (4QFY21) onwards, it said.

“The Nobel Group, with its in-house research and development (R&D) capabilities and years of experience in R&D initiatives in practical applications of polymers in the rubber industry, produces proprietary formulations with a focus on rubber and/or rubber related products such as high-performance custom-made anti-tack rubber lubricant and coatings. Its customers include some of the world’s largest rubber glove manufacturers. The Nobel Group continues to endeavour in its R&D initiatives to develop breakthrough technologies for gloves and its manufacturing processes,” Hextar Global added.

Its shares rose three sen or 2.36% to close at RM1.30 on Monday, for a market value of RM1.71 billion. Year-to-date, the stock has jumped 132% from 56 sen apiece.

Tan Choe Choe