Global packaging manufacturer Scientex has received approval from the shareholders for the proposed acquisition of a 42.41% controlling stake in flexible packaging firm Daibochi for MYR221.1m ($54.21m).

The company announced the deal in November and signed a conditional share sale agreement (CSSA) with vendors for the proposed acquisition in December.

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Daibochi operates manufacturing facilities in Malaysia and Myanmar. It produces high-barrier, laminated flexible packaging for major companies in the food and beverage, fast-moving consumer goods (FMCG) and speciality industries.

At the extraordinary general meeting (EGM), the shareholders of Scientex have also approved a proposed conditional mandatory take-over offer (MGO) to buy all the remaining shares and warrants in Daibochi.

As per the MGO, Scientex will offer a price of MYR1.59 ($0.39) for every Daibochi share and an option to share swap on the basis of one new ordinary Scientex share for every 5.535 Daibochi shares held.

Scientex Berhad managing director Lim Peng Jin said: “We see two key areas where our combined expertise can place both Scientex and Daibochi on an accelerated growth trajectory synergistically.

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“We see two key areas where our combined expertise can place both Scientex and Daibochi on an accelerated growth trajectory synergistically.”

“Firstly, the knowledge-sharing between our in-house research and development teams would enable us to develop a wider range of sustainable flexible plastic packaging, in close collaboration with brand owners and multinational corporations.

“This is imperative to being in the forefront of product innovation, in line with an increasingly urgent demand for more environmentally friendly products. Secondly, we are poised to benefit from increasing opportunities in the food and beverage (F&B) and fast-moving consumer goods (FMCG) markets in Myanmar as it transitions from a closed to open economy. We hope to scale up its operations to tap into the fast-growing market.”

The company expects to close the transaction on or before 19 February.