KUALA LUMPUR (Aug 11): Kanger International Bhd said it has been approached by Dubai-based Constellation Holdings Ltd to jointly set up medical examination gloves operations in Malaysia.
In a bourse filing, the ACE Market-listed company said it received a formal expression of interest (EOI) letter from Constellation, which is the procurement agent for personal protective equipment and medical equipment for the United Arab Emirates's (UAE) Ministry of Health & Prevention.
"The EOI expresses Constellation's willingness to collaborate with Kanger through several options, which include direct equity participation in the formation of a joint-venture entity and/or indirect equity holding in the glove manufacturing operations via investment in Kanger through a private placement exercise, wherein Constellation will seek to become a substantial shareholder of Kanger," the group said.
Kanger said it is currently considering the proposals.
In a separate statement, Kanger executive director Joseph Wu noted that Covid-19 has resulted in a shortage of medical examination gloves globally.
"There are significant business opportunities in this area and by collaborating with a major medical buyer representing governments in the Middle Eastern region, we would be able to tap into their wide customer network to secure long-term supply agreements.
"We plan to establish the medical examination gloves factory in Malaysia to easily access the availability of the necessary raw materials, manpower, technical know-how and management experience," said Wu.
Shares in Kanger finished 5.5 sen or 23.4% higher at 29 sen, valuing the company at RM358.22 million. The counter saw 164.85 million shares traded.
http://www.theedgemarkets.com/article/kanger-courted-uae-firm-jointly-set-glove-outfit-malaysia
