Kuala lumpur: Home appliance distributor Milux Corporation Bhd has proposed to acquire a 100 per cent equity interest in Movon Sdn Bhd from Abletech Solutions Sdn Bhd (ASSB) and Datuk Dr Lim Jee Gin for RM150 million. In a filing with Bursa Malaysia today, Milux stated it had entered into a conditional share sale agreement with ASSB and Lim, the vendors, as well as with Movon and parties nominated by ASSB, for the proposed acquisition.
According to BERNAMA News Agency, the proposed acquisition involves 298.15 million ordinary shares in Movon, representing 100 per cent of the company's shares. The RM150 million purchase consideration will be satisfied entirely through the allotment and issuance of 220.59 million new Milux shares at an issue price of 68 sen per share.
Milux explained that the proposed acquisition aligns with its strategy to strengthen its position in the home appliances and household products segment by offering a more comprehensive range of products and services. The acquisition will expand Milux's distribution channels beyond authorised dealer stores and e-commerce platforms by providing immediate access to Movon's direct selling network of registered sales agents nationwide.
Currently, the Milux Group's revenue is predominantly generated through conventional outright sales, wherein products are sold to authorised dealers for onward retail sale to end-customers, with a smaller portion contributed by rent to own (R2O) schemes. The acquisition will enable the company to leverage Movon's more established R2O infrastructure, which offers greater payment flexibility to customers compared to traditional outright sales.
Milux added that following the proposed acquisition, the enlarged group will be able to offer greater product diversity, a multi-channel distribution network, and more innovative payment structures through Movon's R2O schemes. This is expected to bolster the enlarged Milux Group's market coverage within the home appliances segment, enhance customer access, and enable penetration into new target markets, including households with limited income and tech-savvy consumers.