KUALA LUMPUR: MQ Technology Bhd's (MQTech) has teamed up with Hong Kong-based JD Resources International Ltd to potentially buy a medical rubber gloves company.
MQTech, through wholly-owned Microlead Manufacturing Sdn Bhd (MMSB), inked a joint venture (JV) agreement with JD Resources on the prospect.
MQTech said under the JV, both parties would explore the potential to buy a company involved in the manufacturing and marketing of gloves.
In a statement today, MQTech said the company and JD would form a 30:70 JV company.
Both parties mutually agreed that MQTech is entitled to increase its participation in the JV company by acquiring a 30 per cent stake from JD at fair market value in due course.
"The JV company will enjoy the synergistic effect from the joint venture of MQTech and JD, such as business contacts in Malaysia and international market especially in Europe, procurement of raw materials and equipment, ensuring credit facilities in Malaysia, personnel recruitment, administrative, fiscal and legal services and sales, distribution, marketing and servicing infrastructure at the most favourable terms," it said.
MQTech said JD dealt in the trading business with revenue of around US$150 million (RM639 million) to US$300 million (RM1.28 billion) annually in recent years.
It has extensive know-how and technical information concerning the manufacturing of personal safety apparels including nitrile rubber gloves.
JD chairman Datuk Muzamir Mustafa said the company had flown in more than 350 tonnes of rubber gloves, sourced from local and European manufacturers, in the past few months.
"On the back of our track record, several local banks have shown strong interest to participate in this acquisition of a glove factory and currently we are negotiating with four glove companies before we conclude the acquisition in one or two weeks," he claimed.
MQTech executive director Terence Cheah Eu Lee said the negotiation for the acquisition of the glove company was at an advanced stage at the moment.