Sunzen Group Berhad (“Sunzen” or “the Group”), formally known as Sunzen Biotech Berhad and an established player in Malaysia’s health products, medical devices and services, and loan financing with a diversified portfolio, today announced that it has entered into a Sale and Purchase of Shares Agreement (“SPA”) with Pure Nutritional Products Sdn. Bhd. (“Pure Nutritional” or “the Purchaser”) for the disposal of its wholly-owned subsidiaries, Sunzen Corporation Sdn. Bhd. (“SCSB”) and Sunzen Lifesciences Sdn. Bhd. (“SLSB”), for a total cash consideration of RM17.3 million.
This strategic transaction is part of the Group’s ongoing transformation to streamline its business focus, enhance profitability, and strengthen its balance sheet.
For information, SCSB and SLSB, which have been engaged in biotechnology research and development and animal health products, reported combined losses of RM4.1 million for the financial period ended 30 June 2024. Following the disposal, these loss-making subsidiaries will cease to be part of Sunzen, allowing the Group to focus on its core businesses, including health products, medical devices and services, and loan financing.
Group Managing Director of Sunzen Group Berhad, Mr. Teo Yek Ming commented on the strategic divestment: “This disposal is a decisive step in optimising our business portfolio. By exiting the animal health sector, which recorded losses in the last financial period, we are strengthening our balance sheet and enhancing profitability. The one-off disposal gains of approximately RM2.25 million will immediately bolster our financial position and allow us to consolidate and enhance our business ecosystem, particularly in our high-growth segments.”
He further added, “With this fresh injection of funds, Sunzen is well-positioned to reinforce its core operations. The majority of the proceeds will be channelled into working capital to support our expanding businesses in health products, medical devices and services, and loan financing. This move aligns with our long-term business strategy to focus on sustainability. Our Group will continually explore new opportunities across various industries, aiming to establish individual ecosystems within the fields of health and wellness products, medical devices and services, as well as loan financing, striving to become a sustainable and long-term business establishment.”
Sunzen remains committed to strengthening its financial position by leveraging business opportunities and enhancing operational efficiencies to drive sustainable growth.
