Sunzen to diversify into Chinese medicines manufacturing biz

PETALING JAYA: Sunzen Biotech Bhd has proposed to acquire a 70% stake in Ecolite Biotech Manufacturing Sdn Bhd for RM12.05 milllion, in line with its plans to diversify into manufacturing and trading of Chinese medicines business.
The purchase is to be satisfied through an issuance of more than 37.65 million shares priced at 32 sen per share.
In a filing with Bursa Malaysia, Sunzen said it had entered into a share sale agreement with Chum Mun Cuan and Lim Poh Chuw for the acquisition.
Currently, Sunzen is involved in biotechnology research and development manufacturing and marketing of animal feed supplements and animal health care products.
Meanwhile, Ecolite is involved in the manufacturing and sales of herbal drinks, food stuffs and related health products. It is one of 16 companies in Malaysia approved by the Chinese authorities to export clean edible bird's nests into China.
Sunzen said the acquisition provides the group with an opportunity to diversify its earnings base and to reduce its reliance on
its existing core business.
The group believes it has the capacity, capabilities and resources to diversify into this new business after taking into consideration the track record, competencies and experiences of the existing management team of the Ecolite Group.
Sunzen's may proportionately diluted as a result of the increase in the number of shares after the proposed acquisition.
The stock closed 1.5 sen higher at 34.5 sen on Friday, giving it a market capitalisation of RM166.22 million.