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Annica to acquire stake in new owner of waste tyre pyrolysis plant in Malaysia
CATALIST-LISTED Annica Holdings on Monday morning said it has entered into a non-binding memorandum of understanding (MOU) to acquire an approximately 25.79 per cent interest in Green Pluslink Sdn Bhd (GPL), which is the new owner of a waste tyre pyrolysis plant located at Tanjong Malim, Perak, West Malaysia.
Annica said it will pay up to S$4.2 million for the GPL shares in a mixture of issuance of ordinary shares in Annica and promissory notes, depending on the structure to be agreed between the parties under a definitive agreement.
At the same tine, Annica announced the mutual termination of an agreement for Annica to acquire 49 per cent of Horizon Greentech Resources Sdn Bhd. GPL acquired the Perak plant and its 15 production lines from HGR shareholders, after HGR underwent an internal restructuring.
The company said the proposed GPL acquisition continues to be in line with the corporate strategy of the group to diversify its business to include the recycling, renewable and green technology business.
Annica said GPL will relocate and operate its existing three waste tyre pyrolysis production lines out of the Perak plant, to achieve better economies of scale in its operations.