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KPower signs RM24m deal to supply PCR Covid-19 tests in Indonesia

KUALA LUMPUR (Jan 5): KPower has inked an agreement to supply polymerase chain reaction (PCR) tests for Covid-19 in Indonesia for a minimum contract price of US$6 million (RM24.05 million).

In a bourse filing, the group said its wholly-owned subsidiary KPower Healthcare & Technologies Sdn Bhd was awarded the contract by PT Area Cahaya Medika.

Under the terms of the award, PT Arna will make a purchase order with the KPower subsidiary and the latter will then request the kits from an approved manufacturer and deliver the kits to PT Arna’s warehouse in Jakarta.

KPower said the one-year contract is expected to positively contribute to its earnings for the financial years ending June 30, 2021 (FY21) and FY22.

In a separate filing, KPower said it would be acquiring a 70% stake in Granulab (M) Sdn Bhd for RM1 million from Sirim Bhd’s wholly-owned subsidiary Sirim Tech Venture Sdn Bhd.

Granulab is a medical device manufacturing company for gradual synthetic bones graft “Granumas”.

KPower said the proposed acquisition is part of its overall strategy to expand its business into healthcare and technology-related activities that can generate long term revenue growth and income sustainability.

The acquisition, it noted, marks the maiden venture for KPower into healthcare and technology segment and provides the ability for the group to capitalise on the current surge of global demand for medical products and equipment arising from the Covid-19 pandemic.

“By acquiring the majority equity interest in Granulab, the group can immediately create revenue synergies through its existing platform and network of shareholders, leveraging on strategic partnership with Sirim and technological capabilities of Granulab,” the group added.

KPower shares finished 4.89% or 36 sen higher at RM7.72 today, translating into a market capitalisation of RM873 million. The counter saw 1.65 million shares traded.

http://www.theedgemarkets.com/article/kpower-signs-rm24m-deal-supply-pcr-covid19-tests-indonesia

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