KUALA LUMPUR: Animal health specialist Sunzen Biotech Bhd is disposing of its 70% stake in food items manufacturer Amplio Ingredients Sdn Bhd for RM1.5 million as the latter was unable to procure the level of net profit agreed upon in the acquisition agreement last year. In a filing with Bursa Malaysia, Sunzen said it had entered into a settlement agreement with Amplio and its chief executive officer Low Yuan Heng to settle and resolve controversies and disputes arising from agreements it had with them. However, on May 30, Sunzen announced that Amplio only managed to secure a profit of RM35,291 in the first year, and hence, Sunzen withheld the remaining RM800,000 of the purchase consideration, payable to Low and Cheong. It said the proceeds from the disposal will be used for working capital of the company and defraying estimated expenses in relation to the settlement. As a result of the disposal, however, Sunzen will incur a loss of RM500,000.

Source: The Edge Markets July 05, 2019 02:48 UTC