Malaysian medical equipment manufacturer Careplus (M) Sdn Bhd (CMSB) will sell 50% of its rubber glove manufacturing unit to Australian-listed Ansell Services for MYR26.8 million under a joint venture deal. The agreement also comes with an option for Ansell to acquire Careplus’s remaining 50 % stake in the joint venture company. CMSB is expected to record a “pro forma” gain of some MYR8.68 million from the proposed disposal; it further expects about RM10 million of the proceeds to be used for capital expenditure and another MYR6 million for working capital.
In a statement, CMSB said, “The proposed joint venture will serve as an avenue for Careplus to grow its business, leveraging on the knowledge and cooperation of Ansell, one of the global players for glove manufacturing in the market– Ansell group’s existing global footprint offers new market opportunities for CMSB’s upstream segment to grow its business.”
CMSB added, “The management of Careplus also wishes to highlight the potential full disposal of Careplus’ entire equity interest in CMSB, via the exercise of the call option by Ansell.”