Tien Wah Press Holding (TWPH) announced it has entered into an agreement with Paper Base Converting (PBC) to sell its printing assets for approximately RM1.29 million in cash. TWPH specialises in printing advertising materials, consumer goods packaging, labels packaging and cigarette cartons, among others.
Meanwhile, PBC is an indirect wholly-owned subsidiary of New Toyo International Holdings, which is a major shareholder of TWPH. The disposal of its assets is expected to be completed by the end of March this year.
The move is in line with TWPH's re-organisation of its production footprint to improve its strategic positioning to serve customers and reduce operating costs over the long term. Also, the restructuring will allow TWPH to better capitalise on the growth opportunities in Indonesia and Dubai, as well as identify opportunities in other countries.
According to The Star, TWPH announced plans to terminate its printing business after its major customer, British American Tobacco (BAT), ceased its Malaysian cigarette manufacturing business and moved to Vietnam and Indonesia.
In the third quarter ended 30 September 2017, TWPH achieved a revenue of RM104.5 million, a 26% increase from the same period in 2016. According to the company's financial statement, the growth was mainly attributed to the revenue consolidation of the acquisition of PT Bintang Pesona Jagat. PT Bintang Pesona Jagat is a subsdiary of PT Bentoel Internasional Investama Tbk (Bentoel Group), a member of the BAT group in Indonesia, The Star reported. PT Bintang Pesona Jagat manages Bentoel Group's printing business in Indonesia.