PETALING JAYA: KPower Bhd has entered into a share sale agreement to acquire a 70% stake in Granulab (M) Sdn Bhd, a wholly owned unit of SIRIM Bhd’s subsidiary, Sirim Tech Venture Sdn Bhd, for a total cash consideration of up to RM1 million.
According to the group’s Bursa filing, Granulab is a bio-nexus status company principally involved in the business of medical device manufacturing for ‘halal granular synthetic bone graft products known as “Granumas”, and all activities relating to manufacturing of medical devices and/or products.
KPower explained that the acquisition is in line with its intention to venture into the healthcare and technology business that can create long term revenue growth and income sustainability.
Its chairman Datuk Dr Abdul Karim Abdullah stated that healthcare and technology has always been an area of interest to the group and the opportunities in the sector is a huge appeal.
“However, the most important factor that cemented our decision to venture onto this path was the contribution and value that KPower can offer to the healthcare segment,” he said in a pres release.
“We see a huge potential in this company and this is an opportunity for us to embark on a strategic partnership with Sirim and elevate the company to another level, be it areas of its business, its approach and also its outlook with the mission to create long term value for the stakeholders.”
The partnership between KPower and Sirim Tech together with the acquisition will enable the company to reach new customers, explore new markets and execute larger business expansion activities.
Sirim chairman Tan Sri Dr Ahmad Tajuddin Ali remarked that Sirim realised that developing the right partnership allows both parties to realise success that they could not have otherwise achieved on their own.
“With KPower, I foresee the ever-evolving consumer needs for future medical devices will be catered through innovative technologies especially utilising the Industry 4.0 technologies throughout the whole product value chain,” he said.
With the acquisition, the group revealed that it can create revenue synergies through its existing platform and network of shareholders while leveraging on the strategic partnership with Sirim and technological capabilities of Granulab utilising its various patents, licenses and certifications which are in compliance with international healthcare standards.
Although the group will benefit from the current surge of global demand for medical products and equipment arising from the Covid-19 pandemic, it is looking beyond the current phase.
On top of the acquisition, KPower also secured its first contract under the healthcare segment from its venture in Indonesia to distribute the PCR Reagent Kit for Covid-19 in Indonesia by PT. Arna Cahaya Medika with a minimum value of US$6 million (RM24 million).
