Company News

Hextar Industries Berhad Completes Acquisition Of Hextar Fertilizer Group For RM480 Million

Klang, December 7, 2022 – Hextar Industries Berhad (“HIB”) has completed the acquisition of Hextar Fertilizers Ltd (“HFL”) from Hextar Holdings Sdn Bhd to expand its operations in the manufacturing and distributing fertilizers business. HFL is now a wholly-owned subsidiary of HIB.

HIB had previously entered into a conditional share sale agreement on August 8, 2022 for the proposed acquisition of the entire equity interest: an issuance of 1.6 billion new shares in HIB at 30 sen a share totaling to RM 480 million.

The injection of the HFL comes with a profit guarantee of an aggregate of RM94 million over two years, thus providing assurance of HIB's profitability in the near term. 

HIB group managing director Mr. Benny Ang said that the acquisition will result in an immediate increase in the company’s production capacity from 75,000 metric tonnes to 679,000 metric tonnes per annum.

“Our business is driven by volume. Hence, by increasing our capacity eightfold through the acquisition, we can expand our presence in the domestic market and tap the wider export markets through HFL’s strong global network,” states Mr. Benny Ang.