corporate

MClean proposes slew of corporate exercises to bolster financial standing

KUALA LUMPUR: MClean Technologies Bhd has proposed several strategic moves aimed at solidifying its financial position and diversify its revenue stream.

The proposals include an acquisition of a plastic injection moulding business from We Total Engineering Sdn Bhd at net book value of RM6.04 million.

The company also proposed diversification into the plastic injection moulding business, together with a proposed share capital reduction.

The proposed acquisition and diversification represent a strategic move by MClean Group to enhance its revenue streams, diversify its service offerings while gaining access to We Total's well-established customer base in key industries.

This includes electrical and electronic (E&E), automotive, oil and gas, and medical devices.

The company said the increasing demand for lightweight and high-performance plastic components in these industries offers meaningful growth opportunities for the new business.

The integration of the plastic injection business will not only widen MClean's range of products and services but will further strengthen its competitive position in high-growth sectors.

"We are excited to announce these strategic corporate proposals, which mark a pivotal moment for MClean.

"The acquisition of plastic injection moulding business presents great value for the MClean Group and provides us with an excellent opportunity to expand our product and service offerings and diversify our revenue streams.

"The completion of this acquisition represents a highly favourable opportunity, positioning it as a strong strategic investment that will drive our future growth," said MClean executive director and executive chairman Datuk Dr Terence Tea Yeok Kian.

He added that the private placement and share capital reduction will further strengthen the company's financial position, allowing it to focus on long-term profitability and sustainable growth.

"We are confident that these initiatives will create significant value for our shareholders," he said. 

The company has also proposed a share capital reduction of RM35 million.

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