On behalf of the Board of Directors of Hextar (“Board”), M&A Securities Sdn Bhd (“M&A Securities”) wishes to announce that Hextar had on 8 March 2021, entered into a conditional share sale agreement (“SSA”) for:

1. acquisition of 500,000 ordinary shares in Alpha Aim (M) Sdn Bhd (“AASB”) (“AASB Sale Shares”), representing 100% equity interest in AASB from Tan Seio Beng and Chan Kwei Ling (“AASB Vendors”) (“Proposed AASB Acquisition”); and
2. acquisition of 1,050,014 ordinary shares in Chempro Technology (M) Sdn Bhd (“CTSB”) (“CTSB Sale Shares”), representing 100% equity interest in CTSB from Tan Seio Beng, Cheok Viping and Wetacho (M) Sdn Bhd (“CTSB Vendors”) (“Proposed CTSB Acquisition”).

for a total purchase price of RM138,000,000.00 (“Purchase Price”) to be fully satisfied by cash. (The Proposed AASB Acquisition and Proposed CTSB Acquisition are collectively referred to as the “Proposed Acquisitions”).

(The AASB Vendors and CTSB Vendors are each referred to as the “Vendor” and collectively referred to as the “Vendors”)

In conjunction with the Proposed Acquisitions, the Company intends to undertake diversification of the business activities of Hextar and its subsidiaries (“Hextar Group” or “Group”) to include the business of manufacturing and distribution of specialty cleaning chemicals products such as latex polymers, coagulants, detergents, degreasers, chlorine sanitiser and others (“Proposed Diversification”).

(The Proposed Acquisitions and Proposed Diversification are collectively referred to as the “Proposals”)

Further details on the Proposals are set out in the attached file.

This announcement is dated 8 March 2021.