KUALA LUMPUR, Oceancash Pacific Bhd (OPB) has signed a conditional share sale agreement (SSA) with Paragon Union Bhd to acquire Paragon Car Carpets & Components Sdn Bhd (PCCCSB) for RM13.42 million.
In its filing with Bursa Malaysia today, OPB said the proposed acquisition entails the purchase of 22.75 million ordinary shares, representing a 100 per cent stake in PCCCSB, to be fully settled in cash. “Upon completion, PCCCSB will become a wholly-owned subsidiary of OPB,” the company said.
According to OPB, the acquisition will strengthen its presence in the automotive sector by broadening its customer base and providing direct access to several end-clients, including automotive manufacturers currently served by PCCCSB.
“The acquisition will also allow the group to move into downstream activities of the car carpet supply chain and further expand its reach within the automotive industry. We will leverage PCCCSB’s established business relationships with its customers and create opportunities for cross-selling within the enlarged group, thereby enhancing our competitiveness and positioning in the automotive parts and components market,” OPB added.
The group further noted that the acquisition will not impact its issued share capital or shareholdings of substantial shareholders, as no new ordinary shares will be issued under the deal.
