Rubberex’s shareholders approve test kit maker purchase, diversification into healthcare and name change

KUALA LUMPUR (Sept 14): Rubberex Corp (M) Bhd’s shareholders have greenlit the glove manufacturer’s proposal to acquire a 100% equity interest in test kit manufacturer Reszon Diagnostics International Sdn Bhd for RM180 million.

In a statement, Rubberex said its shareholders in an extraordinary general meeting held on Wednesday unanimously approved the proposed purchase, as well as its subsequent proposed diversification into the healthcare business and name change to Hextar Healthcare Bhd.

Rubberex executive director Goh Hsu-Ming said the acquisition presents a good opportunity for the group to venture into the healthcare sector in view of the Covid-19 pandemic having raised the overall health and safety awareness and created a high demand for healthcare-related products and services in the market.

“By expanding our product offerings, we hope to raise our profile in the market,” he said.

He added that the healthcare business is complementary and synergistic to its core glove business, in line with the group’s overall growth strategy of venturing into other income-generated businesses that are profitable and sustainable for the long-term.

Meanwhile, Rubberex’s largest shareholder Datuk Eddie Ong Choo Meng commented that as a testament to the group’s commitment to the healthcare sector, it proposed and obtained its shareholders’ approval for a name change to Hextar Healthcare.

“This is to better reflect the group’s core business and future undertakings into the broader healthcare sector moving forward. We believe that Rubberex’s new identity, under the larger Hextar family, will pave the way for new growth trajectories in terms of markets, networks and distribution channels, both here in Malaysia and globally,” he said.

According to Bloomberg, Ong’s 90%-owned Hextar Rubber Sdn Bhd owns a 36.76% stake in Rubberex or 302.95 million shares in the glove manufacturer, this translates to an effective interest of 33.08% for the businessman.

Reszon is principally involved in the manufacturing of innovative vitro diagnostics test kits, Covid-19 rapid test kits and test kits specialising in infectious disease diagnosis and drug abuse screening for medical professionals and clinical diagnostic markets. The principal markets for its products are Malaysia and France.

Shares in Rubberex finished one sen or 2.38% higher at 43 sen, giving the group a market capitalisation of RM393.67 million.