Sunzen Biotech Berhad has re-entered into a share sale agreement (“SSA”) with the vendors of Ecolite Biotech Manufacturing Sdn Bhd (“Ecolite”) for the acquisition of 70% of the total number of issued shares in Ecolite, for the same purchase consideration of RM12,050,360 (“Proposed Acquisition”) to be wholly satisfied by the allotment and issuance of 40,848,678 new ordinary shares in SUNZEN at an issue price of RM0.295 per SUNZEN Share.
Ecolite is a health and wellness company that is primarily involved in the manufacturing and trading of traditional Chinese medicines and herbal health foods and beverages.
Their product offerings include; bird’s nest, The Joy of Life collagen drink, Pu Yao Jing tonic, essence of chicken, essence of fish, Pi Pa Gao cough syrup, Bai Foong Wan, food supplements, dried herbs and more.
The Group plans to leverage on its acquisition of the Ecolite Group with its biotechnology expertise to grow the Ecolite’s traditional Chinese medicines, herbal health foods and beverages businesses. In addition, SUNZEN will also gain a foothold in exporting bird’s nests into the People’s Republic of China (“China”). As at 2016, the Ecolite Group through Yanming (Ecolite’s 70% owned subsidiary) is one of 19 companies in Malaysia approved by the Chinese authorities to export raw clean edible bird’s nests into China.
Sunzen’s Chief Executive Officer, Hong Choon Hau (pix) said, “Sunzen has re-considered this proposal as the due diligence issues have been resolved to the satisfactory of the Group. At the same time, we believe that this proposed acquisition will generate more value to our shareholders.”
“Moving forward, we are very optimistic with this business venture as it will open new markets as well as strengthen our global distribution network with new lines of product offerings.”