New Investors For Anzo After It Ventures Into Glove Manufacturing

---

I like it when we hear things in the market and it turns out to be true.Anzo Holdings Bhd, which has been seeking to diversify its business has bought a factory producing medical and/or nitrile gloves in Manjung Perak for RM55 million.

It told Bursa Malaysia that it had entered into a term sheet with Wintrade World Sdn Bhd this morning to acquire the company's assets, including land, building, machineries and equipment in Manjung.
Anzo said the assets are ready to be mobilised and commissioned to produce 1.2 billion pieces of medical and/or nitrile gloves a year.
Let's talk about the share price first before we go on as we also understand that foreign investors have been actively buying into the company. If you look at announcements made to the local stock exchange, there have been active buying in the last few months.
In fact a newspaper reported that something is brewing in Anzo and we believe there could be some truth in this.
On June 23, Anzo was asked to clarify by Bursa on the news report mentioning that "a foreign investor was eyeing a stake in Anzo and it may also come in to inject a new business, to which Anzo responded saying that "The Board noted that there are some foreign investors acquired shares in the company."
While we try to find out more on this, fund managers in the market are speculating that Chinese and Hong Kong cash-rich investors have been buying into Anzo.
I wonder who they could be but the word will go around soon as we will "catch" it in no time. Anzo, which recently won a RM1.3 billion job to supply copper scrap over the next 2-3 years to a large steel-maker in South Korea may turnaround in the current financial year ending 31 July 2020.
Don't ask about next year's earnings as we believe Anzo will be raking in more than RM150 million in net profit from this glove business.
Anzo only told Bursa that the assets and its capacity is expected to generate substantial profits for the group.The current market price for medical gloves or nitrile gloves is in the range of USD70 per box of 1,000 pieces. If Anzo sells the gloves at that price, and we are talking about 1.2 billion pieces of gloves, you can do the math. For us, our calculation is about RM200 million (net profit).
Anzo has paid two per cent of the purchase price to Wintrade's solicitors to hold as stakeholder, as part payment of the purchase consideration. It will pay the balance of eight per cent (RM4.4 million) deposit upon signing of the definitive assets sale agreement. 
The rest of the amount, which is RM49.5 million shall be paid by Anzo within three months from the date of the executed definitive assets sale agreement, with the extension of one month subject to payment of interest rate at eight per annum.
Thank you Anzo! Malaysia needs more companies like you to generate income for the country and create employment.

---