Mega First Corp Bhd (MFCB) is set to acquire a 64% stake in CSC Agriculture Holdings Sdn Bhd, a firm engaged in the cultivation and wholesale distribution of fruits and vegetables, for a sum of RM25 million (€5 mln).
The move will see CSC Agriculture becoming an indirect subsidiary of MFCB, whose interests span across renewable energy and packaging. This acquisition was facilitated through a share subscription agreement between Mega First Agrotech Sdn Bhd, a wholly-owned subsidiary of MFCB, and the current shareholders of CSC Agriculture.
Despite the strategic expansion, MFCB has not disclosed the motivation behind the acquisition. For the fiscal year ending December 31, 2023, MFCB reported a slight decrease in net profit by 3.3%, amounting to RM383.71 million, attributed to various factors including losses in joint ventures and higher inventory impairment.
Following the announcement, MFCB's shares saw an uptick, closing at RM4.84, which reflects a 1.26% increase, thereby valuing the company at RM4.78 billion. The company's stock performance has shown significant growth, marking over a 30% increase since the start of the year.
[ RM1 = €0.20 ]
Source: theedgemalaysia.com