KUALA LUMPUR (Dec 20): Sunzen Biotech Bhd has entered into two conditional share sale agreements to acquire the remaining 30% stakes each in its subsidiaries Ecolite Biotech Manufacturing Sdn Bhd for RM18 million and Yanming Resources Sdn Bhd for RM6 million.

The company told the stock exchange it has entered into a conditional share sale agreement with Koh Lee Fong, Lim Wee Chun, Fam Jian Yap and G Five Holdings Ltd for the acquisition of 2.25 million ordinary shares in Ecolite Biotech Manufacturing Sdn Bhd.

The acquisition would be satisfied via a combination of cash amounting to RM1.8 million and an issuance of 54.9 million new ordinary shares in Sunzen at an issue price of 29.5 sen.

Sunzen said it has also entered into a conditional share sale agreement with Lim Poh Chuw, Fam Jian Yap, Cai HeGui and Chua Huai Gen for the acquisition of 150,000 ordinary shares in Yanming Resources Sdn Bhd, which is to be satisfied via cash amounting to RM600,000 and an issuance of 18.3 million new ordinary shares in Sunzen, also at an issue price of 29.5 sen.

“Upon completion of the proposed acquisitions, Ecolite Biotech Manufacturing and Yan Ming shall become wholly owned by Sunzen,” Sunzen said in a filing to Bursa Malaysia on Wednesday.

Sunzen said the acquisition would be earnings accretive and would contribute positively to the company.

“Furthermore, the issuance of the shares [for the] purchase consideration will enable Sunzen to conserve cash which can be used as working capital and financing its day-to-day operations,” it added.

Sunzen expects applications to the relevant authorities for the acquisitions to be submitted within two months.

"The board expects the proposed acquisitions to be completed by the first half of 2024," it said.