Muda unit buys food wrapping manufacturer for RM2.38m

PETALING JAYA: Muda Holdings Bhd's 70% owned subsidiary Intrapac (Singapore) Pte Ltd has acquired 85% equity interest in food wrapping manufacturer Lonsing Packaging Industries Pte Ltd for SG$807,500.00 (RM2.38 million).
Muda told Bursa Malaysia that the purchase will be satisfied entirely in cash sourced from internally available funds.
The acquisition will provide an opportunity for the Muda group to expand its sales of food packaging products in Singapore.
Meanwhile, Muda announced that its net profit for the first quarter ended March 31,2017 declined 13.45% to RM15.71 million from RM18.15 million a year ago due to higher taxation of RM6.73 million.
Revenue for the period rose to RM371.6 million from RM316.72 million, mainly attributable to higher selling price of industrial paper and paper packaging products.
Muda's share price rose 7.22% to close at RM2.82 with 1.85 million shares done.