Kuala Lumpur: Sabah-based beverage manufacturer Life Water Bhd has entered into a share sale agreement (SSA) to acquire a 90 per cent equity interest in the Hung Tai Group for RM46.8 million.
The Hung Tai Group comprises three Sabah-based companies, namely Hung On Thong Mini Supermarket Sdn Bhd (HOTMS), Hung Tai Enterprise (Sabah) Sdn Bhd (HTE), and Kilang Mee Ban Soon Sdn Bhd (KMBS).
In a filing with Bursa Malaysia on Wednesday, it said the proposed acquisition involves a total of 463,918 HTE shares, 309,279 KMBS shares and 154,640 HOTMS shares, representing a collective 90 per cent equity interest.
“Barring any unforeseen circumstances and subject to the fulfilment of all conditions set out in the agreement, the proposed acquisition is expected to be completed within three months of the date of the SSA.
“Upon completion of the proposed acquisition in accordance with the terms and conditions of the SSA, HOTMS, HTE and KMBS will become 90 per cent-owned subsidiaries of Life Water,” it said.
Life Water said the proposed acquisition is expected to strengthen the group’s position within the consumer products sector by expanding its presence further along the food value chain beyond its bottled water business.
The group said the acquired businesses are expected to provide an immediate earnings contribution through their established operations and proven track record, while enabling operational synergies, including improved logistics, procurement, distribution and administrative efficiencies.
“Overall, the proposed acquisition is expected to accelerate Life Water’s long-term growth prospects within the consumer products sector,” it added.
Meanwhile, Life Water managing director Liaw Hen Kong said the proposed acquisition represents the beginning of a broader consumer platform that combines complementary strengths, enhances the group’s capabilities and positions it for sustainable long-term growth“We are excited by the opportunities ahead as the enlarged group leverages these combined strengths to enhance operational integration, expand market reach and unlock cross-selling opportunities across a broader consumer product portfolio,” he added.
