PPB Group buys Techbond stake

PETALING JAYA: PPB Group Bhd has emerged as a substantial shareholder in industrial adhesives and sealant developing and manufacturing company, Techbond Group Bhd, after buying a 15% stake in the group for RM37.67mil.

The acquisition, which includes a total of 82.39 million ordinary shares and 34.05 million issued and unexercised warrants, was obtained from Techbond’s majority shareholder, Sonicbond Sdn Bhd.

Subject to the full exercise by PPB of the acquired warrants, and on the assumption that all the other outstanding warrants are exercised on or before expiry, PPB’s percentage interest in Techbond would remain unchanged but the total eventual investment would increase to RM48.9mil.

“The investment by PPB is intended to be a long-term strategic holding. Techbond’s significant business operations in the manufacturing of adhesives and sealants is expected to benefit from global industrial growth in various sectors such as construction, automotive, woodworking and packaging industries,” PPB stated in a filing with Bursa Malaysia yesterday.

PPB added the acquisition is not expected to have any material impact on its consolidated net tangible assets and earnings per share for the financial year ending Dec 31, 2024.