Kuala lumpur: Ni Hsin Group Bhd has announced the signing of a heads of agreement (HOA) with Hy-Fresh Group, one of Malaysia’s largest halal-certified poultry enterprises, signaling a potential acquisition.

According to BERNAMA News Agency, the HOA was signed with Datuk Seri Pua Tian Siong, the principal shareholder of Hy-Fresh Group. This agreement initiates a 90-day exclusive negotiation period, extendable if necessary, aimed at finalizing a definitive acquisition agreement pending due diligence, valuation, and regulatory approvals.

The acquisition’s financial terms will involve a combination of cash and the issuance of new Ni Hsin shares priced at an indicative 12 sen each, though the final payment structure will be determined post-due diligence and further negotiations. Hy-Fresh Group’s comprehensive operations include feed milling, farming, hatcheries, processing, and distribution throughout Malaysia and Singapore.

Ni Hsin has stated that the proposed acquisition will not materially affect the group’s earnings per share, net assets per share, or gearing for the fiscal period ending June 30, 2025, given that the acquisition completion is projected for subsequent financial years. The board believes the acquisition aligns with the group’s strategic interests.

In a separate statement, Ni Hsin’s principal officer Khoo Chee Kong highlighted this move as a continuation of the company’s expansion into the food and beverage industry. The poultry market is pivotal to Malaysia’s food sector, driven by strong demand for chicken and eggs.

Hy-Fresh Group encompasses several subsidiaries, including Hy-Fresh Industries Sdn Bhd, PTS Food Distribution Sdn Bhd, and others. Ni Hsin has committed to making further announcements as required by Bursa Malaysia as the situation develops.