KUALA LUMPUR: Unitrade Industries Bhd (UIB), a building materials wholesaler and distributor, has entered into a heads of agreement with Intergreen Holdings Sdn Bhd to negotiate the acquisition of a 51 per cent stake in Intergreen Metals Sdn Bhd.
In a statement today, the company said the acquisition, valued at RM66.3 million, aims to create a synergistic and sustainable ecosystem that complements Unitrade's existing business.
Intergreen Metals is a metal waste recycling firm with a 20-year operating track record, specialising in processing metal waste for recycling into feedstock for steel manufacturers.
Unitrade is also set to acquire a 60 per cent stake in Winnson Marketing Sdn Bhd for RM2.16 million in cash.
The move expands their product portfolio and allows them to enter the sustainable waste management market, particularly through Winnson's distribution of eco-friendly waste management products.
Unitrade managing director Nomis Sim Siang Leng said the acquisitions reflect the company's commitment to environmental responsibility and contribution to a circular metal economy.
"We are very excited about this acquisition as it will mark our entry into the metal recycling business.
"This is a strategic, complementary, and synergistic move to our core business in building materials wholesaling and distribution.
"Under an enlarged entity that is supported by professional management and financial muscles, not to mention cost savings, I am confident we can add a lot more value to steel mill companies and the steel industry as a whole," said Nomis.
The strategic steps aim to add value to the steel industry while promoting sustainable waste management solutions for future generations, he added.