Moody's says Unico-Desa buy is credit negative for IOI

PETALING JAYA: Moody’s Investors Service has rated IOI Corporation Bhd’s acquisition of Unico-Desa Plantations Bhd as “credit negative”, as it would diminish the former’s existing cash positions.

Last week, IOI Corp had announced that its unit, IOI Plantation Sdn Bhd, would be acquiring Unico-Desa at an RM1bil price tag. The company had triggered a mandatory general offer after having acquired almost 40% of Unico-Desa from companies and parties linked to Unico-Desa’s major shareholder Teoh Hock Chai for RM396.63mil.