KUALA LUMPUR (Aug 12): Muda Holdings Bhd said its wholly-owned unit Federal Packages Sdn Bhd (FPSB) has acquired a 60% stake in a corrugated cartons and boards manufacturer for RM15 million.

FPSB acquired the 60% stake in Perak-based Quantum Total Packages Sdn Bhd (QT) from Lee Too Keat and Yu Shan Nee, said Muda in a bourse filing today.

“The purchase consideration of RM15 million for the acquisition was arrived at on a willing-buyer willing-seller basis and based on the audited net asset of QT of RM12.6 million as at Dec 31, 2019, and projected five years profit of QT of RM15 million,” Muda said.

“The acquisition will facilitate Muda Group’s aspiration to further expand its corrugated carton industry and to increase consumption of the group’s industrial grade paper,” it added.

Post-acquisition, Lee and Yu will see their stake in QT reduced to 40% from 100%.

FPSB also has the option to call the sale of the 40% stake to FPSB in the fifth-year of completion of the transaction.

Shares in Muda Holdings closed down 16 sen or 7.8% at RM1.89 today, giving it a market capitalisation of RM576.55 million.