Frencken Group said Thursday it entered a deal to acquire 50 percent of Penchem Technologies from Ng Chee Mang and Wong Kah Gin for around 15.6 million ringgit or around S$5.2 million.
In addition, Frencken has entered a subscription agreement with Penchem for 10,058 shares, or an around 1.92 percent stake, for 600,000 ringgit, or around S$200,000, the company said in a filing to SGX.
Under the deal, Frencken will acquire 209,000 Penchem shares from Ng Chee Mang and 52,500 shares from Wong Kah Gin, the filing said.
Currently, Ng owns 313,399 Penchem shares and Wong holds 52,500 shares, the filing said.
Penchem, which has a manufacturing facility in Penang, focuses on designing, developing and manufacturing polymer materials mainly for the electrical and electronics industry, and also markets coatings, adhesives and fillers for industries including automotive, marine and aerospace, the filing said.
In addition, Penchem has invested in developing environmental and ethically responsible bio-based polymers to meet demand for eco-friendly materials, the filing said.
“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,” Frencken said.
Penchem had a net book value of 16.3 million ringgit, or around S$5.4 million, as of end-December, the filing said.
Frencken said it would finance the deal with internal resources.