Vizione Holdings Bhd
has become the latest to join the rush onto the glovemaking bandwagon, after it recently announced a proposed deal to pay RM5mil cash for a 51% majority stake in glovemaker SSN Medical Products Sdn Bhd.
The proposed deal also took into account SSN’s RM6.8mil net liability and RM1.4mil net loss for the eight months ended Aug 31, as per the company’s draft management accounts.
Given the current high valuations for glove companies, SSN’s less-than-stellar financial results are likely to have weighed on Vizione’s proposed RM5mil stake buy. Vizione managing director Datuk Ng Aun Hooi said the group also expects to inject RM30mil in capital expenditure (capex) to triple SSN’s production capacity to 1.5 billion gloves per year, over the next two years.
...