KUALA LUMPUR (Nov 23): Bamboo products manufacturer Kanger International Bhd said it is acquiring the remaining 49% stake in building materials supplier Sung Master Holdings Sdn Bhd for RM72 million cash.

The group had acquired the other 51% stake in Sung Master in April 2021 for RM94.8 million.

Sung Master is primarily involved in the sales and trading of building materials, including timber flooring, tiles, bulk cement, concrete, locksets and sanitary ware. Its clients consist of property and construction players as well as engineering consultants who are either a main contractor or sub-contractor of a development project.

According to Kanger, which expanded into the construction business in 2021, Sung Master has contributed to the group's revenue for the financial year ended March 31, 2022 (FY2022).

"The proposed acquisition of additional equity interest in Sung Master is expected to allow the group to recognise the entire profit after tax from Sung Master, translating to a more reflective margin result of the group according to its controlling interest in Sung Master," the group said in a filing with Bursa Malaysia on Thursday.

It added: "Since its incorporation into the group, Sung Master has been able to provide complementary synergies such as the sharing of the building materials that are supplied by Sung Master and cross sell these building materials to the group's sub-contractors who are working at its construction sites."

Shares of ACE Market-listed Kanger went up by one sen or 15.38% on Thursday to close at 7.5 sen, for a market capitalisation of RM45.26 million.

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Kanger International buys 51% stake in building materials supplier for RM95m