KUALA LUMPUR (Oct 31): Kumpulan Perangsang Selangor Bhd has today received its shareholders’ approval for the proposed acquisition of an approximately 71.44% stake in Century Bond Bhd, through its wholly-owned subsidiary Perangsang Packaging Sdn Bhd (PPSB), for a total consideration of RM 150.03 million.

In the statement, it said Century Bond is involved in the manufacturing of cement bags and holds a 60% market share in Malaysia, as well as having a presence in Indonesia, Singapore and Thailand.

The proposed acquisition and a Mandatory General Offer (MGO) for all remaining Century Bond shares not already owned by PPSB following the completion of the acquisition, in addition to a proposal to include manufacturing businesses for the diversification of the existing principal activities of the Perangsang Selangor Group, were met with shareholders’ approval at an Extraordinary General Meeting (EGM) today.

“Backed by the mandate from our shareholders, we are excited to complete our third acquisition of the year, as Century Bond meets all desired investment criteria we have identified, as part of our business strategy,” shared Perangsang Selangor Chief Executive Officer Ahmad Fariz Hassan at the EGM.

Fariz mentioned in the statement that while Century Bond has a long track record with its customers and has established itself as a market leader in Malaysia, the business has further potential to be unlocked, given that capital expenditure on infrastructure in the ASEAN region, especially in Thailand and Indonesia, is expected to grow exponentially over the next decade.

We believe that Century Bond is ideally positioned to capitalise on these opportunities, while allowing Perangsang Selangor to diversify our revenue generation streams, thus reducing our dependency on domestic market performance, he said.

“Based on the positive outlook that we have on this investment, we are optimistic that Century Bond will be able to contribute more than 25% to the total net profits of the Perangsang Selangor Group in the coming financial years,” Fariz added.

The Company has a varied investment portfolio with assets involved in Trading, Infrastructure and Utilities, Licensing, Oil and Gas, as well as Telecommunications.