KUALA LUMPUR: Batu Kawan Bhd said it has entered into a deal to buy Permodalan Nasional Bhd's entire stake in Chemical Company of Malaysia Bhd (CCM) for RM292.8mil.
The purchase has triggered a mandatory general offer for the remaining shares in CCM at RM3.10 each.
CCM was last traded up 5 sen to RM2.79 today on volume of 2.19 million shares.
Batu Kawan said it intends to maintain the listing status of CCM on the main market of Bursa Securities.
In a filing with Bursa Malaysia today, Batu Kawan said it had entered into a deal with PNB and Amanahraya Trustees Bhd to acquire a total of 94.45 million shares in CCM at RM3.10 a share.
Upon completion of the Proposed Acquisition, Batu Kawan's shareholding in CCM will increase from nil to about 56.32%.
Batu Kawan said the proposed acquisition is an opportunity for the group to acquire an established chemicals and polymers manufacturer, as well as to increase its market presence as a chlor-alkali chemicals manufacturer.
The CCM Group is principally involved in the manufacturing and marketing of chlor-alkali chemicals and polymers chemicals.
Under the chlor-alkali segment, the CCM Group manufactures chlorine, caustic soda, hydrochloric acid, sodium hypochlorite and polyaluminium chloride, which are largely used in water treatment, rubber gloves, oleochemical, oil and petrochemical, electronics and textile industries.
"In addition to the manufacture of polymer chemicals which are primarily supplied to the glove manufacturing industry, the CCM Group also manufactures calcium nitrate which is an important component of rubber glove manufacturing as it is used for latex coagulation (from liquid to solid state)," it said.
PNB said in a statement that the price of RM3.10 represented a 69% premium to the three-month volume weighted average share price.
Its president and group chief executive, Ahmad Zulqarnain Onn, said the divestment was part of PNB’s asset diversification strategy to rebalance the portfolio and was consistent with its efforts to continuously enhance value and deliver sustainable returns to its unit holders.
"A robust sale and price discovery process was conducted by our adviser Maybank Investment Bank Bhd and we are pleased that the final sale price represents a significant premium to the market price.
"As with other investment and divestment decisions made by PNB, this divestment has undergone a rigorous due diligence and a multi-layer governance process to ensure it meets PNB’s stringent investment policies and objectives,” he said.
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