Malaysia firm to control CollTech

Osborne Park-based biotechnology company CollTech Australia has entered a deal which will see control pass to a Malaysian health care business.

CollTech has entered a non-binding agreement where it will issue 770 million shares to acquire Holista Biotech Sdn Bhd, which will become a subsidiary.

CollTech currently has around 277 million shares on issue.

The Osborne Park-based company said, should the transaction go ahead, current Holista shareholders will together hold up to 71.4 per cent of the company, with the largest of the vendors to hold a 40 per cent stake,.

"CollTech is in the process of finalising a binding sale agreement for the Transaction and anticipates that completion will occur in early May 2009," the company said.

Holista currently has around 58 employees and reported earnings before interest, tax, depreciation and amortisation at the end of 2008 of $1.6 million.