In a filing with Bursa Malaysia, PPB disclosed the acquisition of 82.39 million ordinary shares and 34.05 million warrants in TGB directly from Sonicbond for RM37.67 million in cash.

The investment was financed using internally generated funds by the conglomerate, which operates in investment holding, food production, film exhibition and distribution, and property.

TGB, listed on the Main Market, specialises in developing and manufacturing industrial adhesives and sealants for a variety of industrial and consumer applications.

In response to the transaction, TGB managing director Lee Seng Thye said he welcomes PPB Group as a significant new shareholder, describing it as a strong vote of confidence in their strategic direction and growth prospects.

“We believe this partnership will create significant value for all stakeholders as we continue to execute our growth strategies,” he said.

Lee stated that TGB’s optimistic outlook is supported by robust order flow and recovery in customer demand, alongside positive developments at their upstream polymerisation plant.

He also noted the group’s goal to end the financial year 2024 (FY2024) on a high note and sustain the momentum into FY2025.

For the nine months ending March 31, 2024, TGB reported record cumulative revenue of RM112.6 million, marking a 50.5% increase year-on-year from RM74.8 million, driven by strong order flow and sectoral recovery.

On the market front, PPB Group closed down 14 sen at RM14.40 on a trading volume of 684,000 shares, while TGB ended flat at 43.5 sen, with 817,200 shares changing hands.