The consideration payable for this transaction is RM15.6 million ($5.2 million), which the group will satisfy wholly in cash.
The net book value of Penchem and its subsidiary was RM16.3 million as at Dec 31, 2021. No independent valuation was conducted on Penchem.
The subscription price for 1.92% representing 10,058 ordinary shares of Penchem is RM0.6 million.
This partnership with Frencken will allow Penchem to significantly leverage on the synergistic benefit arising from global market accessibility of both companies. This translates to Penchem having a larger and broader clientele potentially scaling its revenue baseline.
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Shares in Frencken closed 6.17% lower on Jan 27 at $1.52.
