Sunzen Biotech revives deal to acquire herbal products manufacturer for RM12 million

PETALING JAYA: Sunzen Biotech Bhd has revived the deal to acquire a 70% stake in herbal and health products manufacturer Ecolite Biotech Manufacturing Sdn Bhd, following the termination of a previous share sale agreement last November.
In conjunction with the proposed acquisition, the company is also undertaking the proposed diversification of the business activities to include the manufacturing and trading of traditional Chinese medicines and herbal health foods and beverages.
Sunzen said in a Bursa Malaysia filing that the due diligence issue which resulted in the termination of a previous share sale agreement with Chum Mun Cuan and Lim Poh Chuw, has been resolved.
Hence, it had on January 26 re-entered into a new SSA with Chum and Lim to acquire the 70% equity interest in Ecolite for the same purchase consideration RM12.05 million.
The consideration is to be satisfied through the allotment and issuance of 40.85 million new shares in Sunzen to the sellers at an issue price of 29.5 sen per share.
Sunzen's shares rose 1.67% to close 30.5 sen on some 70,000 shares done.