Borneo Oil acquires 22.5% in MTSB for RM73.56mil

KUALA LUMPUR: Borneo Oil Bhd has entered into a sale of shares agreement with MT 23 Resources Ltd (MT 23) to acquire 28.36 million shares, or 22.49% of the existing equity interest in Makin Teguh Sdn Bhd (MTSB), a manufacturer of clinker and cement products, for RM73.56mil.

Borneo Oil, in a filing with Bursa Malaysia, said the purchase consideration was on a willing-buyer-willing-seller basis. It would be satisfied by way of treasury shares transfer and cash from internally generated funds.

Following an announcement made on April 7, MT 23 has transferred 19.54 million shares of the issued and paid-up share capital of MTSB to Borneo Oil, and agreed to sell a further 28.36 million MTSB shares, representing a total of 38% shareholdings in MTSB.

“The acquisition presents an opportunity for Borneo Oil to move downstream its quarrying resources to boost the profits further.

“There is synergy between Borneo Oil’s existing limestone quarrying business operations and MTSB's clinker and cement plant,” it said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Borneo Oil , MTSB , acquisition , downstream


Next In Business News

EVD debuts on ACE Market at 26 sen per share
Bursa remains little changed amid lack of direction
Trading ideas: Mudajaya, Farm Fresh, Reach Energy, iDimension Consolidated, Marine & General and Teck Guan Perdana
GLOBAL MARKETS-MSCI global stock index has biggest first-half drop on record
From EU to BRICS and NATO, June meetings showcase global strains
Oil price falls 3% on uncertainty over future OPEC+ output, recession fears
STOCKS: S&P 500 closes the book on its steepest first-half slide in 52-yearssince 1970
DNB stake sale meets deadline
UK household incomes are in the longest-ever run of decline
Poultry players’ earnings to improve slightly

Others Also Read