Pecca acquisition target Rentas Health secures contract to supply PCR test kits to MoH

Pecca acquisition target Rentas Health secures contract to supply PCR test kits to MoH
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KUALA LUMPUR (Aug 9): Rentas Health Sdn Bhd, in which Pecca Group Bhd has proposed to acquire a 51% stake, has secured a RM25.2 million contract to supply Covid-19 polymerase chain reaction (PCR) test kits to the Ministry of Health (MoH). 

In a statement today, Rentas said its South Korean-manufactured PCR test kit will be used in 21 government hospitals nationwide, including Hospital Kuala Lumpur, Hospital Sungai Buloh and the Sarawak Heart Centre.

The test kit venture is being undertaken in partnership with LG International Corp, with Rentas appointed as the sole distributor in Malaysia, the company said.  

“The pandemic has reinstated the importance of protection and has made face masks and test kits a daily necessity,” said Rentas managing director Kelly Teoh Zi Yuen. “We have a diverse clientele base, ranging from retailers, hospitals, and the government sector.” 

Rentas also supplies test kits for the reverse transcription-polymerase chain reaction (RT-PCR) test, which is the international standard Covid-19 test approved by the World Health Organisation and MoH.

“Rentas is also principally involved in the supply of medical equipment which includes amongst others, personal protective equipment (PPE) and related products i.e. face masks, coveralls, jumpsuits, face shields, hand sanitiser, and disinfectant,” it added.

Teoh, who is also the daughter of Pecca founder and managing director Datuk Teoh Hwa Cheng, said Rentas believes demand for masks, PPE and other Covid-related products will remain strong.

“To continue maintaining our strong competitive edge, we will dedicate efforts to R&D (research and development) to lead in product innovations. We are optimistic to make new R&D breakthroughs in the short to medium term,” she said.

Pecca, which makes leather upholstery for seat covers used in the automotive and aviation industries, announced on Aug 2 that it is buying a 51% stake in Rentas for RM100 million in a cash and stock deal to venture into healthcare-related business.

Pecca’s share price closed 20 sen or 5.03% lower at RM3.78 today, giving the group a market capitalisation of RM710.64 million.

S Kanagaraju