KUALA LUMPUR (Jan 5): Plastic products maker SKP Resources Bhd is targeting an increase in revenue of 40% or RM250 million for its financial year ending March 31, 2016 (FY16), resulting from the consolidation of SKP and Tecnic Group Bhd.

For FY14, it posted a net profit of RM30.08 million on revenue of RM425.52 million.

Earlier at the extraordinary general meeting (EGM) today, SKP's shareholders approved the proposed acquisition by SKP of Tecnic Group's business for RM200 million in cash and shares by way of poll. The resolution on the proposed acquisition was passed, with 16% against it.

SKP executive director Ivan Gan Poh San said the acquisition would allow SKP to achieve economies of scale in terms of production, as well as an opportunity to expand the group's customer base.

"It is impossible to build what Tecnic has achieved today in a short period of time, especially its customer base that includes Fortune 500 companies," he told reporters after the EGM.

Gan said the management will focus on completing its corporate exercise before looking into new business venture for Tecnic.

Asked whether Tecnic is open for a reverse takeover (RTO), Gan said it could be one of the possibilities, but stressed that the management has yet to come out with any concrete plan at this juncture.

As at 2.43pm, shares of SKP were down 0.78% at 64 sen, giving it a market capitalisation of RM571.5 million. Tecnic's share price, on the other hand, was unchanged at RM5.20, valuing it at RM210.07 million.