Mega First Corporation Bhd (MFCB) will purchase 64% of CSC Agriculture Holdings Sdn Bhd an organization that is involved in the production and wholesale distribution of fresh fruits and vegetables. The deal is in a total amount in the range of RM25 million (EUR5 million).

This move will result in CSC Agriculture becoming an indirect affiliate of MFCB with interests that span over renewable energy as well as packaging. The acquisition was made possible by an agreement to subscribe shares with Mega First Agrotech Sdn Bhd which is a wholly owned subsidiary of MFCB as well as the present owners of CSC Agriculture.

Despite the strategic extension, MFCB has not disclosed reasons behind its purchase. The fiscal year ended the 31st of December, 2023 MFCB recorded a decline in the net profit of 3.3 percentage, equivalent to RM383.71 million. This was due to diverse factors like losses from joint ventures, as well as the increase in inventories impairment.

After the announcement, shares of MFCB increased, and closed at RM4.84 This is 1.26 percentage increase, making the value of the business RM4.78 billion. MFCB’s stock performance has seen significant improvement and has seen a more than 30% rise since at the beginning of this year.

[ RM1 = EUR0.20 ]

Source: theedgemalaysia.com