KUALA LUMPUR (May 10): LKL International Bhd (LKL) has proposed to diversify into

the rubber gloves and personal protective equipment (PPE) sector.

The company has also proposed a private placement of up to 355.05 million placement

shares at an issue price to be determined later, of which proceeds will be utilised for the

new businesses.

In a filing with Bursa Malaysia today, LKL said after taking into consideration the current

market demand for rubber gloves and PPE following the Covid-19 pandemic, the group

had resolved to venture into the new businesses.

The group is currently involved in the manufacturing of medical/healthcare beds, medical

peripherals, and accessories, as well as the trading of medical furniture, medical devices,

medical peripherals and accessories.

The group has also intended to enter into distribution agreements with suppliers of

rubber gloves and PPE.

“The proposed diversification allows the group to capitalise on the increasing demand for

rubber gloves and PPE while making the most out of the opportunities created by the

Covid-19 pandemic.

“It will also provide an additional revenue stream to the group’s current core business,” it

said.

Based on the illustrative issue price of RM0.16 per placement share, some RM56.81

million to be raised from the proposed private placement would be utilised for the trading

of rubber gloves and PPE, setting up new storage facilities, and defray expenses for the

proposals.

LKL said it reasonably expects its future participation in the new businesses may result in

the diversion of more than 25% of the net assets of LKL Group, and may result in

contributing 25% or more of the group’s net profits.

As such, it said the company had proposed to seek the approval from the shareholders

for the proposed diversification