KUALA LUMPUR: Resintech Bhd has signed a memorandum of understanding (MoU) to acquire a 30 per cent stake in Bionutricia Holding Sdn Bhd (BHSB) from the controlling shareholders for RM8.7 million.
Resintech is acquiring the stake from Ng Kuak Ping and Kong Siew Mee, BHSB's chief executive officer and general manager, respectively.
Resintech managing director Datuk Dr Teh Kim Poo said in recent years, people have become more conscious of what goes into the preparation of the food and beverages they consume due to increased food safety awareness and education.
"BHSB's green biotechnology extraction processes are suitable for colouring and flavouring in food and beverages because of the natural ingredients used," he said in a statement today.
Resintech is a fully integrated provider of polyethene products and unplasticised polyvinyl chloride (uPVC), while BHSB is a biotechnology firm established in 2006 specialising in the production and commercialisation of plant- and fruit-based extracts and active fractions from local herbs through advanced nano-biotechnology processes.
BHSB's products include proprietary, standardised herbal plants and fruits-based extracts, food supplements, baking ingredients, nutraceutical ingredients, healthcare products and functional food ingredients. Its facilities are certified good manufacturing practices (GMP), hazard analysis critical control points (HACCP), JAKIM halal and kosher.
"Our entry into the biotechnology space through the acquisition of the 30 per cent stake in BHSB is recognition of the growth opportunities from the increasing food-safety awareness among consumers.
"We expect demand for safer and natural food colourants and flavourings to grow exponentially as a result of these health and food-safety concerns," Teh said.
Resintech registered revenue of RM61.6 million for the nine months (9M) ended 31 December 2021 (FY22), an increase of 13.2 per cent compared with RM54.4 million in the same period of FY21.
The company recorded RM5.0 million in profit before tax in 9M FY22, a decrease of 7.4 per cent compared with RM5.4 million, while there was a 15.8 per cent decrease in profit after tax to RM3.2 million compared with RM3.8 million in the previous corresponding period mainly due to movement restrictions and disruptions to business operations.