Scientex gains 1.49% on acquisition of plastic packaging firm

PETALING JAYA: Scientex Bhd's shares rose 1.49% to RM8.80 this morning on news of its acquisition of Klang Hock Plastic Industries Sdn Bhd for RM190 million cash, which will set the tone for it in becoming a regional powerhouse in the flexible plastic packaging market.
At 11.14 a.m the stock stood at RM8.83 with 357,200 shares done.
The group said in a filing with the stock exchange last Friday that the acquisition comes with a profit guarantee of RM18 million for the 12-month period to March 31, 2019.
In addition to that, the deal will also enable the group's manufacturing segment to recognise an annual revenue of over RM2 billion per year and expand its total annual output capacity by about 30% to 455,000 metric tonnes from the current 356,000 metric tonnes.