KUALA LUMPUR (March 16): Sabah-based consumer packaged goods (CPG) distributor Kim Teck Cheong Consolidated Bhd (KTC Consolidated) is expanding its footprint to Brunei, through the acquisition of a 60% stake in Grantop Marketing Sdn Bhd (GMSB) for B$600,000 or RM1.79 million.

It told Bursa Malaysia via a filing today that the proposed acquisition would potentially provide it with access to approximately 600 sales and distribution points, with the infrastructure in place — including warehousing facilities — in Brunei.

The group has entered into two conditional agreements with various parties for a 60% stake buy in GMSB.

The first agreement was entered into with Phang Lee Yen, Lim Sok Lan and Woo Chung Heng — the shareholders of GMSB — to acquire 80,000 shares for B$80,000 (RM238,464).

The second agreement was entered into with GMSB, for the subscription of 520,000 new shares for B$520,000 (RM1.55 million).

KTC said the proposals are in line with the company's future plans to acquire an existing CPG distributor in Brunei, as disclosed in its listing prospectus.

The move, it said, will enable it to expand its coverage to Brunei, in terms of provision of market access and coverage of CPG.

"The company will also be able to leverage on GMSB's respected profile, enabling the company to establish its business presence in Brunei," it added.

KTC expects the proposals to contribute positively to its future earnings.

It expects the proposals to be completed in the second quarter of 2016.

Shares in KTC gained 0.5 sen or 1.49% today to close at 34 sen, valuing it at RM510.28 million.