Friday 29 Mar 2024
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KUALA LUMPUR (March 13): PRG Holdings Bhd's 63%-owned subsidiary Furniweb Holdings Ltd, which is listed on the Hong Kong Stock Exchange, has proposed to acquire Meinaide Holdings Group Ltd for HK$140 million to be fully satisfied via the issuance of shares.

Furniweb believes that the acquisition provides an excellent opportunity for it to expand its business portfolio to include production and sale of polyvinyl chloride (PVC) foam boards, polystyrene foam boards, PVC construction template and other plastic products which is of high growth potential.

In a filing with Bursa Malaysia, PRG announced Furniweb has entered into a sale and purchase agreement (SPA) with Triumph Star Global Ltd for the proposed acquisition.

Under the deal, Furniweb will issue 56 million new shares to Triumph Star Global at HK$2.50 per share, which represents a 11.03% discount to the closing price of HK$2.81 per share yesterday (March 12).

The SPA also entails a profit guarantee from Triumph Star Global to Furniweb that the consolidated net profit of Meinaide will not be less than RMB10 million for the financial year ending Dec 31, 2019 (FY19).

After completion, Meinaide will become an indirect wholly-owned subsidiary of Furniweb.

At 3.47pm, PRG shares were down 0.5 sen or 0.67% at 74 sen, with 389,900 shares done, bringing a market capitalisation of RM238.8 million.

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