WITH the glove business outlook not as rosy as before, it is not surprising that listed Rubberex Corporation(M) Berhad (Rubberex), announced a diversification on May 31.
It has proposed to acquire Reszon Diagnostics International Sdn Bhd (Reszon), for up to RM180.0 million from EL Law and Revongen Corporation Sdn Bhd. It will pay up to RM54.0 million cash and the balance RM126.0 million by issuing 177,690,030 new Rubberex shares at RM0.7091 each.
Reszon develops and manufactures a strong portfolio of innovative in-vitro diagnostics (IVD) rapid tests and enzyme-linked immunosorbent assay (ELISA) kits for medical professionals, including clinical diagnostic markets worldwide
Subsequent to the acquisition, Rubberex intends to diversify into the healthcare sector and related businesses and proposes to change its name to Hextar Healthcare Berhad.
Rubberex’s Executive Director Goh Hsu-Ming said: “The Group’s progression into the healthcare sector, specifically in the manufacture of medical devices such as test kits, is complementary to our existing glove business.
“We are able to offer a wider range of products to the market and provide an alternative income-generating source besides personal protective equipment.”
Rubberex’s sole largest shareholder, Dato’ Eddie Ong Choo Meng, also supports this venture and believes that the latest investment would contribute positively to the future growth of Rubberex.
“Our proposed acquisition is in line with the Group’s strategic aim of enhancing shareholders’ value in the long term by providing quality healthcare products and services for the global population.
Director and founder of Reszon, EL Law is also enthusiastic on the prospects for the healthcare industry. He shared: “The technology for the manufacture of medical devices has come a long way. Previously, tests for diseases were only performed in laboratories, health clinics and hospitals.
“The trend for disease diagnoses has shifted to home-based testing and medical test kits are now considered mainstream to curb the spread of viruses swiftly and control future dangerous outbreaks.”