BUSINESS

PECCA TO TAKE OVER RENTAS FOR RM100 MLN AS IT EYES HEALTHCARE BUSINESS

02/08/2021 09:15 PM

KUALA LUMPUR, Aug 2 -- Pecca Group Bhd has proposed to acquire 204,000 ordinary shares, or a 51 per cent equity stake in Rentas Health Sdn Bhd, for RM100 million.

This comes as the company plans to go into healthcare-related businesses.

Pecca told the stock exchange that the purchase consideration shall be satisfied via a combination of RM50 million in cash and the balance via the issuance of 11.99 million new Pecca shares at an issue price of RM4.17 per share.

“The proposed acquisition will enable the group to extend its product range and provide additional revenue stream as currently, Rentas Health is the distributor for two facemask brands, namely Rentas Health and Callie as well as an appointed agent for BioSewoom coronavirus test kits.

“This would enable the group to tap into the existing customer base and distribution networks of Rentas Health to attain a wider customer (base),” it said.

Managing director Datuk Teoh Hwa Cheng said Pecca must be quick to acknowledge that business conditions have significantly changed because of the COVID-19 pandemic.

“We saw an immediate need to embrace new ways of doing business in order to ensure that we remain relevant in the new business environment. This dynamism and agility led us to diversifty into the healthcare business which we believe would be the business of the future.

“With a profit guarantee of no less than RM23 million on Rentas for the financial year ending June 30, 2022, the proposed acquisition would certainly contribute positively to our bottom line,” he added.

-- BERNAMA


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