KUALA LUMPUR: DKSH Holdings Bhd's proposed acquisition of Auric Pacific (M) Sdn Bhd could be positive for the company due to the potential synergies through the extension of its client portfolio base, cross selling and expansion of its product range. "The proposed acquisition will enable DKSH to increase its market share in the market expansion services industry in Malaysia and provide opportunity to grow its position in the fast-moving consumer good (FMCG) segment. "This also represents a gateway for DKSH to increase its product and client portfolio base. "In the past 3 years, Auric was able to achieve net profit margin of 3-7% while year to-date FY18 was about 8%. Assuming acquisition is fully funded by borrowings, its net gearing is expected to go up to 0.9x."

Source: The Star December 24, 2018 00:56 UTC