Sunzen re-enters into share sale agreement with Ecolite

PETALING JAYA: After having resolved past issues that prevented a deal between the vendors of Ecolite Biotech Manufacturing Sdn Bhd and Sunzen Biotech Bhd, the latter has now re-entered into a share sale agreement with Ecolite.

“The issue has subsequently been resolved to the satisfaction of the company,” Sunzen said in an announcement to the Bursa Malaysia.

Following this resolution, Sunzen will now proceed and acquire 5.25 million shares or 70% of Ecolite, for an unchanged purchase consideration of RM12.05mil from its vendors: Chum Mun Cuan and Lim Poh Chuw.

This was same amount that was announced on July 7, 2017, the company noted.

The RM12.05mil will be wholly satisfied by the allotment and issuance of about 40.85 million new shares in Sunzen at an issue price of RM0.295 per share, it said.

“Sunzen has re-considered this proposal as the due diligence issues have been resolved to the satisfactory of the group.

“At the same time, we believe that this proposed acquisition will generate more value to our shareholders,” Sunzen’s chief executive officer Hong Choon Hau said in the statement.

“Ecolite is a health and wellness company that is primarily involved in the manufacturing and trading of traditional Chinese medicines and herbal health foods and beverages.

“Their product offerings include; bird’s nest, The Joy of Life collagen drink, Pu Yao Jing tonic, essence of chicken, essence of fish, Pi Pa Gao cough syrup, Bai Foong Wan, food supplements, dried herbs and more,” it said. Sunzen said in a press release that it plans to leverage on its acquisition of the Ecolite Group with its biotechnology expertise to grow Ecolite’s traditional Chinese medicines, herbal health foods and beverages businesses.

In addition, the company said it will also gain a foothold in exporting bird’s nests into mainland China.

“As at 2016, the Ecolite Group through Yanming (Ecolite’s 70% owned subsidiary) is one of 19 companies in Malaysia approved by the Chinese authorities to export raw clean edible bird’s nests into China,” it said.

“Moving forward, we are very optimistic with this business venture as it will open new markets as well as strengthen our global distribution network with new lines of product offerings,” Hong added.