KLK to buy Belgium-based TensaChem SA for RM69.1m

PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) is planning to buy Belgium-based oleochemical firm, TensaChem SA, for Euro 16.16 million (RM69.1 million) in cash.
In a statement with Bursa Malaysia yesterday, KLK said it has entered into an agreement with GRI Group Limited and three individuals to buy the entire issued and paid-up share capital of TensaChem.
TensaChem is a surfactants supplier for the personal care and home care sectors. The manufacturing of alcohol ether sulphates, alcohol sulphates and sulphonic acids makes up about 96% of its business.
TensaChem's operations are based on a 10ha manufacturing site located on the outskirt of Leige, Belgium.
KLK said the proposed acquisition would be financed by internally generated funds.
On completion of the acquisition, TensaChem would be a subsidiary of the group.
It would result in "positive synergies" for the group's oleochemical operations in Europe and extend the value chain in the oleochemical division's business.