Anzo buys glove manufacturer; new shareholders coming in soon?

Anzo buys glove manufacturer; new shareholders coming in soon? | Yes. Anzo is certainly marking its mark in the stock trading of late. Bursa's most active stock, Anzo has acquired a manufacturing plant producing medical and/or nitrile gloves in Perak for RM55 million.

I have just shared about the plan of Anzo's plan and now, it is a done deal with acquiring the manufacturing plant. The group reported to Bursa Malaysia today that it had entered into a term sheet with Wintrade World Sdn Bhd this morning to acquire the company's assets, including land, building, pieces of machinery and equipment in Manjung.

Anzo told Bursa today that it had paid two percent of the purchase price to Wintrade's solicitors to hold as a stakeholder, as part payment of the purchase consideration. It expects to pay the balance of eight percent or RM4.4 million deposit upon signing of the definitive assets sale agreement. The balance amount of RM49.5 million shall be paid by Anzo within three months from the date of the executed definitive assets sale agreement, with the extension of one month subject to payment of interest rate at eight per annum. Anzo said the assets and its capacity is expected to generate substantial profits for the group.

The group also mentioned that the assets are ready to be mobilized and commissioned to produce 1.2 billion pieces of medical and/or nitrile gloves a year.

Today, the stock opened actively this morning to close two sen higher to 18.5 sen at 12.30pm. Some 115.8 million shares were traded and it was also one of Bursa's most active counters today. The share price of Anzo has shot up from below 5 sen to touch 19 sen today before 12.30pm, probably because it has also been actively announcing new mega-deals, unlike the other listed companies on the stock exchange.

New mega deals? That alone has certainly piqued everybody's interest to know more and in-depth about the news. And the new substantial shareholders may emerge next week in Anzo. 

This great piece of news shows that foreign investors or foreign funds are looking at Malaysia for their growth story. All these happening when not just a week ago Anzo had secured an RM1.3 billion contract to supply millberry/candy copper scrap over 40 months indirectly to a large steel-maker in South Korea.

With the whole global market is still picking up its paces, it is interesting that Anzo can do so much and is unfazed by global market uncertainties.

While Anzo did not specify how much it will make from exporting the gloves, we understand that the net profit could be in the region of RM150 million to RM200 million. This is because, if you look at it, the current market price for medical gloves is around US$75 per box of 1,000 pieces. 

Well done to Anzo for being able to create positive news in the market. These achievement depicts the growth in economy thus leads to better economy for us Malaysians. 

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