KPB proposes to acquire 100% equity interest in SCCS for RM20mil

KUALA LUMPUR: Kuching Plywood Bhd (KPB) plans to acquire 100 per cent equity interest in Sing Chew Coldstorage Sdn Bhd (SCCS) for a cash consideration of RM20 million.

In a filing with Bursa Malaysia today, WTK Holdings Bhd, a wholly-owned unit of KPB, said KPB has entered into a share sale agreement with TMC Importer & Exporter Sdn Bhd (TMC) for the proposed acquisition.

TMC was wound up by the High Court in Sibu, Sarawak on August 30, 2018.

KPB had expressed interest to acquire shares in SCCS after the liquidator of TMC put up an invitation for expression of interest to acquire the shares in SCCS publicly on March 19, 2022, said WTK.

"TMC agrees to sell to KPB and KPB agrees to purchase from TMC the shares on an as-is-where-is basis.

"Upon the completion of the proposed acquisition, SCCS will become a wholly-owned subsidiary of KPB,” it said.

According to WTK, the proposed acquisition represents an opportunity for the group to diversify into the business of importer, wholesaler and retailer of frozen food, as SCCS has an established track record in the frozen food industry.

"The proposed acquisition is expected to provide the group with a long-term viable business with growth opportunity,” it said.

WTK also said its subsidiaries have purchased frozen foods of RM4.15 million and RM2.95 million from SCCS for the financial year ended Dec 31, 2020 and Dec 31, 2021, respectively.

"The proposed acquisition would also able to mitigate potential conflict of interest between WTK and the interested directors and shareholders of SCCS,” it said. - Bernama