Newly formed Secos Group Ltd. plans to sell its share in a Malaysian joint-venture company that manufactures release liners.
Melbourne, Australia-based Secos was formed in April though a merger of Cardia Bioplastics Ltd. with Stellar Films Group Pty. Ltd. The company makes bioplastics, and is publicly traded.
The merger included Stellar's 50.8 percent interest in Akronn Industries Sdn Bhd, which manufactures silicone-coated film products at a plant in Nilai, Malaysia. Secos also owns Stellar Films (Malaysia) Sdn Bhn, which operates a plant at Port Klang, Malaysia.
Akronn silicone coats Stellar films and markets them as release liners to the personal care, hygiene, photovoltaic and graphic arts industries.
The decision to sell Akronn follows a strategic review of Secos' holdings, Chairman Richard Tegoni said in a statement.
Secos Group Managing Director Stephen Walters was unable to answer a series of questions about potential purchasers, the time frame for the sale, the likely price, and whether Akronn will continue to be a Secos customer after the sale.
“The current negotiations are confidential therefore we cannot comment at all, on anything, at this time,” he said.
Tegoni's statement said: “Secos is currently in discussions with suitable silicone release industry partners [about] the sale of its interest in Akronn. Potential industry partners have expressed a strong interest in either injecting further capital into Akronn with the objective of taking a controlling interest or effecting an outright purchase of the business.”
Secos also said it will sell its minority interest in Bioglobal Ltd., an unlisted Australian public company that moved its operations to Shenzhen, China, in January 2012. Bioglobal invests in and commercializes intellectual property to develop “novel and profitable products for the biochemical pest and insect management markets.”
Tegoni said Secos has entered into an agreement to sell its interest in Bioglobal for A$488,280 and the transaction will complete this month, making cash available to fund working capital for Secos's sales growth.
