UG HEALTHCARE : 8K7 0% acquired a 50 per cent interest in reusable glove distributor UG Nitrex for 500,000 euros (S$730,650) to form a joint venture with its initial shareholders in Spain, the group said on Thursday (Jun 6).
The acquisition was accompanied by a put-and-call option agreement between Unigloves Singapore – UG Healthcare’s wholly owned subsidiary – and the initial shareholders.
Such an option agreement will give UG Healthcare the opportunity to consolidate control of UG Nitrex’s remaining shares from Jul 1, 2027.
UG Healthcare executive director and finance director Lee Jun Yih said increasing its equity interest in UG Nitrex presented opportunities to drive the group’s downstream distribution business and “explore new areas of business”, as well as expand into neighbouring countries.
He added that the joint venture with UG Nitrex enables “instantaneous ownership” and expansion of the group’s product portfolio of reusable gloves, safety footwear and personal protective equipment for industrial applications.
UG Healthcare’s joint venture came after the Catalist-listed company fully acquired 80.7 per cent of remaining shares in Unigloves Germany in May for 16.9 million euros, granting UG Healthcare full ownership.
In its latest announcement, the group added that full ownership of control of Unigloves Germany was important in its preparations to make “further inroads into the European markets”.
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Shares of UG Healthcare closed 4.4 per cent or S$0.006 lower at S$0.131 on Wednesday.