Kanger seals deal to venture into glove sector
11 Aug 2020
Kanger International Bhd, which diversified into property investment and management to reduce its sole reliance on its current core business, may venture into medical examination gloves operations.
The company today said it had received a formal expression of interest (EOI) from a company in Dubai to set up a medical examination gloves operations in Malaysia.
In a filing with Bursa Malaysia, Kanger said it had received the EOI, dated August 9 from Constellation Holdings Ltd.
Constellation is the appointed procurement agent for personal protective equipment, medical equipment and supplies for the Ministry of Health & Prevention of the United Arab Emirates, and other countries in the Middle Eastern region.
The EOI expresses Constellation’s intention to collaborate with Kanger through several options.
This includes direct equity participation by forming a joint-venture entity, and/or indirect equity holding in the glove manufacturing operations via investment into Kanger through a private placement exercise.
Kanger said the private placement would result in Constellation becoming a substantial shareholder in it.
“The board is considering the proposals set forth in the EOI and will continue to engage with Constellation to achieve an outcome that is in the best interest of the company and all stakeholders,” it said.
Kanger, which manufactures bamboo wood products, has been seeking to diversify its income stream.
In March, the company announced that it had secured 10-year lease agreements for two of its commercial buildings located within the Ganzhou Economic and Technological Development Zone in Ganzhou city, China.
Kanger is leasing AutoCity, a purpose-built six-storey building with a net lettable area (NLA) of 493,062 sq ft, and a 19-storey hotel with an NLA of 190,715 sq ft.
The two properties are owned by Kanger’s indirect wholly-owned subsidiary Ganzhou Kanger Industrial Co Ltd.