Hextar Global Closes An RM50 Million Financing Agreement To Finance The Acquisition Of Nobel Group By Its Specialty Chemicals Subsidiary

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Hextar Global Bhd has secured an RM50 million financing facility from HSBC Amanah Malaysia Bhd to fund the acquisition of Nobel Synthetic Polymer Sdn Bhd and Nobel Scientific Sdn Bhd, collectively known as the Nobel Group. The Nobel Group manufactures and supplies chemical derivatives, coatings, and related products.

The agrochemical firm stated in a stock exchange filing that the facility is projected to enhance its consolidated gearing from 0.52 to 1.21 times. The facility will be guaranteed by its wholly-owned subsidiary, Hextar Chemicals Sdn Bhd.

Hextar Global’s shareholders approved its proposed acquisition of the Nobel Group on Thursday (Sept 23).

“Following shareholder approval, Hextar will now finalise the acquisition of the Nobel Group and begin integrating its business operations into the Hextar Group,” Hextar Global stated.

Nobel Group is expected to contribute positively to the group’s earnings beginning in the fourth quarter of fiscal year 2021 (4QFY21).

“The Nobel Group, with its in-house R&D capabilities and years of experience in R&D initiatives for practical applications of polymers in the rubber industry, develops proprietary formulations with a focus on rubber and/or rubber-related products, such as high-performance custom-made anti-tack rubber lubricant and coatings. Among its customers are several of the world’s top manufacturers of rubber gloves. Nobel continues to invest in research and development to create game-changing technology for gloves and manufacturing processes,” Hextar Global underlined.

Its shares increased three sen or 2.36 percent to RM1.30 on Monday, valuing the company at RM1.71 billion. The stock has increased 132 percent year to date, from 56 sen per share.

Published by Zack Baharum

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