IOI Corp explained the higher PBT was due mainly to net foreign currency translation gain
KUALA LUMPUR: IOI Corporation Bhd
is selling its 100% stake in IOI Lipid Enzymtec Sdn Bhd (IOILE) to Loders Croklaan Group BV for RM330.50mil.
The plantation heavyweight said on Friday the sale of IOILE was part of the proposed disposal under its internal restructuring.
IOILE and Loders Group are manufacturers of specialty oils and fats.
In 2017, IOI Corp inked a sale and purchase agreement with US-listed Bunge Ltd to sell 70% of IOI Loders Croklaan Group BV and its related businesses for RM3.94bil cash consideration.
IOI Corp said on Friday the sale of IOILE has no impact on the IOI Corp group’s consolidated financial position.
“The gain or loss arising from the internal restructuring (if any) will be fully eliminated upon consolidation of the group’s financial statements given that the transaction involves IOI Corp and its wholly-owned subsidiaries,” it said.
Upon completion of the sale of IOILE, Loders will become the holding company.
To recap, IOI Corp's sale of OI Loders Croklaan Group BV consists of 297 million euros (RM1.49bil) plus US$595mil (RM2.5bil).
IOI Corp will record a gain on disposal of RM2.5bil. It is allocating 50% of the RM3.94bil in proceeds to pare down its debts over the next 24 months. It is also allocating some RM788.2mil for cash dividends, which it is looking to pay out over the 12 months.
Meanwhile, RM1.17bil is allocated for future investments.
IOI Corp acquired the entire business of Loders from Unilever Plc and Unilever NV for RM814mil cash in 2002.
