Megachem Limited announced that its 36.19%-owned associated company Megachem (Thailand) Public Company Limited, will be acquiring 55% of Green Leaf Chemical (“GLC”) at a purchase consideration of THB 82.5 million ($3.37 million).
Following the acquisition, Megachem Limited will have an effective indirect equity interest of approximately 19.9% in GLC, while PS Miracle Holding and Folium Co will retain their stakes of 25% and 20% respectively.
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GLC is in the business of importing and distributing chemical materials for the manufacturing of personal care products such as cosmetics and nutraceuticals as well as providing service for clinical testing of such products.
The purchase consideration, which was agreed upon on a willing buyer and willing seller basis, will be satisfied wholly by cash and will be fully funded internally from Megachem Thailand.
In its media release issued on Sept 17, the group says, "The proposed acquisition by Megachem Thailand will enhance the group’s product portfolio and deepen our coverage of the personal care industry thereby strengthening our market position. We will also seek to derive synergistic value to deliver better customer propositions."
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Shares in Megachem gained 9.5% or 4 cents on Sept 17, closing at 46 cents.
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