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.