NST Business
KUALA LUMPUR: Anzo Holdings Bhd has acquired a factory manufacturing medical and/or nitrile gloves in Manjung, Perak for RM55 million, marking its entry into the glove industry.
In a filing with Bursa Malaysia today, Anzo said it had bought the assets of Wintrade World Sdn Bhd including land, building, machineries and equipment.
The assets are ready to be mobilised and commissioned to produce 1.2 billion pieces of medical and nitrile gloves a year.
This confirms a report by the New Straits Times (NST) that Anzo had bought a manufacturing plant to export medical gloves, valued at about RM400 million per annum.
It was expected that Anzo would export the gloves from next month to countries such as Canada and the United Kingdom.
The NST also reported that the return on investment for Anzo should be six to 12 months as it may sell the gloves at the current market price of US$70 to US$75 per box of 1,000 pieces.
This means the potential net profit for Anzo from this business is expected to be in the region of RM150 million or more.
Anzo, which a week ago had secured a RM1.3 billion contract to supply millberry/candy copper scrap over 40 months indirectly to a steelmaker in South Korea, entered into a term sheet with Wintrade this morning.
The stock closed two sen higher to 18.5 sen at 12.30pm, with a total of 115.8 million shares traded.
Anzo said it had paid two per cent of the purchase price to Wintrade's solicitors as part payment of the purchase consideration.
The company is expected to pay the balance of eight per cent or RM4.4 million deposit upon signing of the definitive assets saleagreement.
The balance of the purchase consideration amounting to RM49.5 million will be paid in three months from the date of the executed definitive assets sale agreement, with an extension of one month subject to payment of interest rate at eight per annum.