Glenmarie, Shah Alam, – Toner manufacturer Jadi Imaging Holdings Bhd (“JADI”) has announced on Bursa Malaysia that it has entered into a subscription agreement with Static Control Holdings Limited yesterday. The proposed subscription by Static Control is a total of 94,170,040 subscription shares at an issue price of RM0.13, representing approximately 10% of the total number of issued shares in JADI.
The proceeds to be raised from the proposed subscription will be utilized towards the expansion of JADI’s existing production facility for Chemically-Produced Toner (CPT). The expansion project will increase JADI’s production capacity for CPT to 660MT per annum. With the subscription agreement, JADI and Static Control have also signed a supply framework agreement in which the latter will commit to purchase a specified quantity of CPT over a period of 3 years commencing 1st April 2020.
The subscription agreement paves the way for a synergistic collaboration between JADI, an established manufacturer of high quality toners and Static Control, a market leader in the manufacture and distribution of printing and imaging products. Furthermore, the entry of Static Control as a substantial shareholder of JADI with board representation is a strategic move which will enable both parties to leverage on each other’s technical knowledge, market intelligence and experience in the printing and imaging sector.
JADI is principally involved in the development, formulation, and manufacturing of toners for laser printers, photocopiers, and multi-function office equipment. With 26 years of process innovation and research and development in the field of toner, JADI has established itself as a leading toner manufacturer in the industry. Besides toner products, it also manufactures styrene acrylate toner resin which is a primary raw material in the production of toner.
Static Control is a wholly-owned subsidiary of Ninestar Corporation which is publicly listed on the Shenzhen Stock Exchange with a market capitalization of RMB22.65 billion. Ninestar and its subsidiaries are also a prominent global leader in the provision of printing and imaging products, output solutions and managed print services. It owns Lexmark, a globally renowned printer brand, and Pantum, a leading printer brand in China. Ninestar has approximately 16,000 employees worldwide and an annual sale of RMB22 billion, with products available in more than 150 countries.