KUALA LUMPUR, Mar 10, 2022 - (ACN Newswire) - Resintech Berhad (Bursa: RESINTC, 7232), a fully integrated provider of polyethylene products and unplasticized polyvinyl chloride (uPVC), is pleased to announce the signing of a Memorandum of Understanding (MoU) for the acquisition of a 30% stake in Bionutricia Holding Sdn. Bhd. from the controlling shareholders for the sum of RM8.7 million.
Mr. Ng Kuak Ping, CEO of Bionutricia; Mr. Teh Leng Kang, ED of Resintech Bhd; Ms. Kong Siew Mee, GM of Bionutricia [L-R]
Bionutricia is a biotechnology firm established in 2006 specialising in the production and commercialisation of plant- and fruit-based extracts and active fractions from local herbs through advanced nano-biotechnology processes. Bionutricia's products include proprietary standardised herbal plants and fruits-based extracts, food supplement, baking ingredients, nutraceutical ingredients, healthcare products and functional food ingredients. Its facilities are certified GMP, HACCP, JAKIM Halal and kosher.
Resintech is acquiring the stake from the controlling shareholders, Ng Kuak Ping ("Ng") and Kong Siew Mee, Bionutricia's Chief Executive Officer and General Manager, respectively.
Managing Director of Resintech, Dato' Dr. Teh Kim Poo said, "The heightened awareness and education on food safety in recent years have meant that people are more careful in what goes into the processing of the food and beverages they consume. Bionutricia's green biotechnology extraction processes are suitable for colouring and flavouring in food and beverages because of the natural ingredients used".
"Our entry into the biotechnology space through the acquisition of the 30% stake in Bionutricia is recognition of the growth opportunities from the increasing food-safety awareness among consumers. We expect demand for safer and natural food colourants and flavourings to grow exponentially as a result of these health and food-safety concerns."
Ng of Bionutricia said, "We look forward to a mutually beneficial partnership with Resintech and we are excited to work with them on the growth possibilities for our products and solutions in the food and beverage industry. Together, we are better able to seek opportunities to expand the business."
Resintech registered revenue of RM61.6 million for the nine months ended 31 December 2021 ("9MFYE22"), an increase of 13.2% compared with RM54.4 million in the corresponding period of 9MFYE21. The Company recorded RM5.0 million in profit before tax in 9MFYE22, a decrease of 7.4% compared with RM5.4 million while there was a 15.8% decrease in profit after tax to RM3.2 million compared with RM3.8 million in the previous corresponding period mainly due to movement restrictions and disruptions to business operations.
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