KUALA LUMPUR (Feb 9): Tien Wah Press Holdings Bhd will continue to manufacture and supply packaging materials for the British American Tobacco (BAT) group until Dec 31, 2025.

In a bourse filing on Thursday (Feb 9), Tien Wah said BAT had agreed to extend the agreement with its Indonesian subsidiary PT Bintang Pesona Jagat (BPJ) by another three years.

Tien Wah said the agreement is expected to contribute positively to the future earnings and net assets of the company as and when the expected earnings contribution from the said extension materialises.

Tien Wah bought BPJ from BAT for RM97.75 million in late 2016. The proposed acquisition had come with the agreement that BPJ was the exclusive supplier to provide print supplies to BAT in Indonesia for six years from January 2017.

Tien Wah also has an ongoing contract to supply printed cartons to BAT for a five-year period from Jan 1, 2020 to Dec 31, 2024.

Shares of Tien Wah closed unchanged at 92 sen on Thursday (Feb 9), valuing the group at RM133.16 million. Meanwhile, shares of British American Tobacco (Malaysia) Bhd closed 60 sen lower to RM12.20, valuing the group at RM3.48 billion. 

Read more: 
Tien Wah seals deal to buy over BAT's unit in Indonesia 
Tien Wah Press unit gets five-year extension to supply printed cartons to BAT