BCorp unit sells securities in Taiga to UPP

KUALA LUMPUR: Berjaya Corp Bhd (BCorp), through unit Berjaya Forest Products (Luxembourg) S.a.r.l (BForest), is selling its entire 39.09% equity stake as well as subordinated notes in Canada-based wood product maker Taiga Building Products Ltd to UPP Holdings Ltd for C$65.58mil (RM206.35mil)

In a filing with Bursa Malaysia on Wednesday, BCorp said it proposed to dispose of its common shares in Taiga to the Singapore-listed paper and paper product maker for C$12.67mil (RM39.94mil).

It also is selling its C$46.01mil principal amount of 14% unsecured subordinated notes in the associate firm for C$52.91mil (RM166.41mil).

The Taiga group owns and operates three wood preservation plants producing pressure-treated wood products. It is also a wholesale distributor of building materials.

UPP is 25.52% owned by its executive chairman Datuk Tong Kooi Ong, who is also chairman and a substantial shareholder (19.25% stake) in Taiga.

BCorp said the proposed disposals would result in a total net gain of about C$23.14mil (RM72.9mil)

“The proposed disposals represent an opportunity for the BCorp group to realise its entire investment in Taiga,” it said, adding tht the cash proceeds would be used for the group’s working capital.

The transactions, which require the approval of UPP’s shareholders but not BCorp’s shareholders, are expected to be completed by the first quarter of 2017.