SCGP Solutions (Singapore) Pte Ltd, a wholly-owned subsidiary of Thailand’s largest packaging paper firm SCG Packaging, has acquired 68.3 per cent stake in Malaysia’s Interpress Printers Sendirian Berhad (IPSB) for 104.5 million ringgit ($26.5 million), according to a Stock Exchange of Thailand filing on Monday.
Thai conglomerate Siam Cement Group (SCC), a parent company of SCG Packaging, cited in the filing that the remaining stakes will be held by IPSB’s existing shareholders.
This acquisition is in line with its commitment (SCG Packaging) in becoming a total packaging solutions provider in ASEAN countries as well as exhibits its potential to serve the burgeoning region’s fast food consumption, evolving lifestyle and preferences of consumers, the filing said.
IPSB, located in Selangor state, is a food-grade paper packaging leader that serves global fast food restaurant chains. Its main products include folding cartons, formed trays, clamshells, wrappers and bags.
SCC said, IPSC reported total sales in 2017 of around 585 million baht ($18.35 million), mainly generated from its export sales.
In ASEAN, SCG Packaging is the market leader in Thailand and Vietnam. It has formed Vina Kraft Paper Co Ltd, a joint venture with Japan’s Rengo Company, and invested $330 million in setting up the largest packaging paper plant in Vietnam.
Roongrote Rangsiyopash, president and CEO of SCC, previously told local media that it was looking at aggressive expansions in ASEAN with new investments and via mergers and acquisitions.
It plans to focus on three businesses: construction materials, petrochemical and packaging, said Rangsiyopash, adding that it will also double the number of employees by 2026, with half based in Thailand and the rest in other ASEAN countries.