Adventa to sell sterilisation service provider E-Beam for RM75m

TheEdge Wed, May 29, 2019 01:20am - 4 years View Original


KUALA LUMPUR (May 28): Adventa Bhd plans to dispose of its entire stake in Electron Beam Sdn Bhd (E-Beam) to Synergy Sterilisation (M) Sdn Bhd (SSMSB), a wholly-owned unit of New York-listed STERIS Plc, for RM75 million, cash.

It has inked a conditional share sale agreement with SSMSB for the disposal, from which it expects to record a net gain of RM35.2 million, it said in a stock exchange filing today.

E-Beam is a wholly-owned subsidiary of Adventa and its principal activities are the provision of industrial and commercial sterilisation services as well as warehousing and handling services.

It recorded an audited profit after tax (PAT) of RM6.1 million for the 14-month financial period ended Dec 31, 2018 with an audited net assets (NA) of RM33.5 million at the same period. For the 14 months ended Dec 31, 2018, E-Beam contributed RM18.44 million to Adventa’s topline, representing about 30.1% of Adventa’s revenue.

SSMSB, meanwhile, was incorporated in Malaysia on April 21, 2000, and its principal activity is the provision of sterilisation services for healthcare products. Its parent, STERIS, is a provider of infection prevention and other procedural products and services, said Adventa.

As at 20 May 2019, BlackRock Inc, Vanguard Group Inc, Janus Henderson Group PLC and Wellington Management Group LLP each held more than 5% shareholdings in STERIS, Adventa said.

“The board believes that the proposed E-Beam disposal provides an opportunity for the company to unlock and realise the value of its investment in E-Beam,” said Adventa.

It plans to use the sale proceeds to, among others, expand its healthcare distribution and home dialysis businesses, repay bank borrowings and for working capital.

Adventa shares closed three sen or 7.89% higher at 41 sen yesterday, giving it a market capitalisation of RM62.64 million.

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