Enra bags Australian chemical company

Kuala Lumpur: Enra Group Bhd's (Enra) indirect wholly-owned subsidiary, Enra Kimia (Australia) Pty Ltd, is set to acquire International Chemicals Engineering Pty Ltd (ICE) in a bid to expand its footprint in the speciality chemicals sector.The acquisition is expected to be completed in the second quarter of the financial year ending March 31, 2019.

In a filing with Bursa Malaysia on Wednesday, Enra said the acquisition would involve a cash payment of AU$2.9 million (RM8.7 million) and assumption of AU$1.6 million (RM4.7 million) of existing shareholders' loans in ICE.

"The aggregate of this amounts to AU$4.5 million or about RM13.5 million," it said.

ICE is involved in the business of importing and distributing speciality chemicals and while domiciled in Australia, has also business in New Zealand.

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Enra said ICE distributed a smaller portfolio of similar speciality chemicals in a different market and was a natural expansion opportunity for Enra Kimia.

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Enra Kimia Sdn Bhd (Enra Kimia) is an indirect wholly-owned subsidiary of Enra and currently a major earnings contributor to Enra, as well as a significant player of in the speciality chemical products segment in Malaysia.

The acquisition is expected to benefit Enra Kimia by providing it geographical access, where it will be able to potentially offer an expanded range of its products and services.—Bernama

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