Precision parts manufacturer Kobay Technology Bhd said its 70%-owned subsidiary Avelon Healthcare Sdn Bhd has secured banking facilities totalling RM21 million from CIMB Islamic Bank Bhd for the acquisition of a company and subsequent working capital needs.

KUALA LUMPUR (April 3): Precision parts manufacturer Kobay Technology Bhd said its 70%-owned subsidiary Avelon Healthcare Sdn Bhd has secured banking facilities totalling RM21 million from CIMB Islamic Bank Bhd.

Of this, RM15 million comprises a revolving credit for the acquisition of a company and subsequent working capital needs, Kobay said, without naming the company.

Last month, Kobay announced that Avelon Healthcare had completed the acquistion of a medical products distributor, Medicwave (M) Sdn Bhd, for RM15.12 million cash.

In a bourse filing on Wednesday, Kobay said the balance of the banking facilities will mainly be used for working capital purposes.

Kobay has reported a 66% year-on-year decline in net profit to RM3.07 million for its second quarter ended Dec 31, 2023 due to a shift towards lower-margin sales, subdued demand, and elevated setup costs. Quarterly revenue decreased 6% to RM77.25 million.

Shares of Kobay closed unchanged at RM1.66 on Wednesday, giving the group a market capitalisation of RM531.5 million.