Envictus Int'l proposes acquisition of Malaysian firm for RM24m

ENVICTUS International Holdings' wholly owned subsidiary Polygold Holdings has entered into a conditional share sale agreement with Khor Sin Kok and Khor Guat Bee to acquire Motivage for RM24 million (S$8 million).

RM5 million will be paid by cash and the remaining RM19 million will be through the issuance of 15.78 million shares in Envictus. The shares are being issued at a price of S$0.3913 which represents a discount of 2.2 per cent to the volume weighted average price of S$0.40 for trades done on the Singapore Exchange on Nov 7.

This is considered an interested party transaction because Khor Sin Kok is the deputy group chief executive officer of Envictus and Khor Guat Bee is his sister. Both are directors and shareholders of Motivage.

The 15.78 million shares represent an 11.1 per cent stake in the enlarged share capital of Envictus.

Motivage is a company incorporated in Malaysia with its principal activities being food processing and trading in consumable products and property holdings and investments.

It owns two plots of adjoining industrial land of 361,169 square feet located at Port Klang. The land, which is leasehold with a tenure that expires on Feb 24, 2097, was valued by Kumpulan Jurunilai at an open market value of RM21 million in an evaluation report dated July 20. Motivage has also been issued a manufacturing licence from Malaysia's Ministry of International Trade and Industry for the manufacturing of sweetened condensed milk, evaporated milk, milk powder, sterilised milk and tin cans on the land.

The RM5 million in cash will be funded by the group's internal resources.

Envictus will be seeking approval from shareholders for the issuance of the shares at an extraordinary general meeting to be convened.