SINGAPORE (Nov 15): Envictus International says wholly-owned subsidiary, Polygold Holdings, is acquiring food processing and trading company in Malaysia, Motivage for RM24 million ($7.8 million).

The group will be acquiring about 14.8 million shares in Motivage, which represents 100% of the total issued and paid-up share capital, from directors of Motivage – Khor Sin Kok and Khor Guat Bee.

The group will satisfy RM5 million out of the total consideration in cash, while the remaining RM19 million will be satisfied by the allotment and issuance of an aggregate of about 15.8 milion shares in the capital of Envictus to the vendors.

Motivage also owns two plots of adjoining industrial land totalling 361,169 sf at Selangor Halal Hub, Pulau Indah, Port Klang.

The land has a 99-year leasehold tenure expiring on Feb 24, 2097. The land has been independently valued at RM21 million.

Motivage also has a manufacturing licence from the Ministry of International Trade and Industry of Malaysia for the manufacturing of sweetened condensed milk, evaporated milk, milk powder, sterilised milk and tin cans on the land.

It has also registered the trademarks “Motilait” and “Family Farm” with the Trade Mark Registry in Malaysia and intends to supply products under the brands.

Following the completion of the acquisition, Motivage will be a fully-owned subsidiary of Envictus.

The acquisition will be funded by the group’s internal resources.

Shares in Envictus closed at 40 cents on Wednesday.