KUALA LUMPUR: Pecca Group Bhd has revised its healthcare diversification strategy and cancelled its proposed acquisition of 51% equity interest in personal protective equipment supplier, Rentas Health Sdn Bhd.

       In a statement, the vehicle leather upholstery manufacturing and design company said its intention to diversify remained intact as it planned to utilise its strong cash position to seek suitable merger and acquisition or joint-venture opportunities.

       "Our proposed diversification into healthcare will not be pursued at this juncture, in consideration that the existing healthcare-related business is not expected to divert 25% or more of the net assets or net profit of the group in the near future.

       "However, Pecca will continue to monitor the contribution of its healthcare-related business, which is mainly the manufacturing of medical-grade face masks, and make necessary announcements to Bursa Malaysia Securities Bhd as and when new businesses or contracts have been identified,” it said.

       Pecca Group managing director Datuk Teoh Hwa Cheng said: “A business diversification plan remains a positive move for Pecca in order to avoid the Group from being solely reliant on a single segment.”

       “It is our utmost priority to seek for income sources apart from the automotive segment, and we shall seek for more mutually beneficial ways to work with our partners in this business venture.

       “As and when any new opportunities arise, the Board will also seek necessary approval from shareholders if the nature of the transaction requires it,” he said.

       As at June 30, Pecca holds a cash and cash equivalent of RM78.13mil and zero borrowings.

       The group plans to utilise the cash through value-accretive efforts and seek suitable merger and acquisition or joint-venture opportunities that can enhance the earnings visibility of the group going forward.