Asia Poly Holdings proposes business acquisition, diversification

PETALING JAYA: Asia Poly Green Energy Sdn Bhd, a wholly-owned subsidiary of Asia Poly Holdings Bhd has entered into a conditional share sale agreement with Dolphin International Bhd for the proposed acquisition of 4.5 million shares for RM2.12 million cash in Dolphin Biogas Sdn Bhd representing an 80% equity interest.

In a Bursa Malaysia filing this evening, Asia Poly said the acquisition would also involve the assumption of liabilities amounting to RM341,270.90 owed by Dolphin Biogas to Dolphin Applications Sdn Bhd, as well as any advances by Dolphin International to Dolphin Biogas.

The group also proposed a diversification of its business to include renewable energy business and related activities.

Asia Poly Group is engaged in the manufacturing and selling of acrylic products for the property development sector, under the brand "A-Cast".

" In view of the current financial performance of Asia Poly Group, the management has identified the renewable energy business as a source of additional income stream and had embark on the renewable energy business via its indirect wholly-owned subsidiary, namely Asia Poly Bio Gas Sdn Bhd, which has been granted a feed-in approval by SEDA to supply biogas to Tenaga Nasional Bhd (TNB) and is expected to commence operations in the fourth quarter of 2022" it said.

The biogas plant is expected to commence operations after final negotiations with TNB and upon completion of the proposed acquisition.

" The board anticipates that its venture into the renewable energy business together with the proposed acquisition may in the future contribute 25% or more of the net profits of Asia Poly Group and/ or result in a diversion of more than 25% of the net assets of Asia Poly Group," it said.

Looking ahead, Asia Poly said it expects the prospects of the enlarged Asia Poly Group to be favourable in the long run.

"Taking into consideration that the biogas plant is ready for operations, this will improve the financial performance and allow the enlarged Asia Poly Group to be in a better financial footing in the long run and the management remains cautiously optimistic of the longer term prospects in view of the growing global demand within the renewable energy sector."

The proposals are expected to be completed by the second quarter of 2020.

source https://www.thesundaily.my/business/asia-poly-holdings-proposes-business-acquisition-diversification-GG1954585