KUALA LUMPUR: DKSH Holdings (Malaysia) Bhd has proposed to acquire the entire equity interest in Auric Pacific (M) Sdn Bhd for about RM480.91 million.
The acquisition would be made via its Singaporean unit, DKSH Holding (S) Pte Ltd with Auric Pacific Marketing Pte Ltd and Centurion Marketing Pte Ltd.
In a filing with Bursa Malaysia, DKSH said the market expansion services provider said Auric Pacific was one of the established players in the distribution of chilled and frozen products and in the food services channel in Malaysia.
“The strengths of Auric are complementary to DKSH existing fast moving consumer goods (FMCG) market expansion services. The proposed acquisition is in line with DKSH’s horizontal integration strategy to make further strategic investments in DKSH’s market expansion services.
“This represents a gateway for DKSH to further increase its product portfolio which creates a synergy effect and is expected to generate positive earnings to the company,” DKSH said.
As both DKSH and Auric are involved in similar FMCG business, the proposed acquisition would create enhanced scale and synergies for DKSH through, amongst others, revenue synergies as DKSH is able to grow its FMCG business.
In addition, DKSH will be able to acquire Auric Pacific’s business of manufacturing melange, which will create additional income stream for DKSH group of companies.
At 3.20 pm, DKSH shares rose 16 sen to RM2.31 with 210,700 shares transacted.