Cahya Mata Sarawak to sell stakes in two companies for US$120mil

KUALA LUMPUR: Cahya Mata Sarawak Bhd (CMSB) has proposed to dispose off the group’s entire 25 per cent interest in ferrosilicon and manganese alloy smelter OM Materials (Sarawak) Sdn Bhd and project management service provider OM Materials (Samalaju) Sdn Bhd for US$120 million (US$1=RM4.42).

The infrastructure facilitator said its wholly-owned subsidiary Samalaju Industries Sdn Bhd had inked a conditional agreement to sell the stakes to OM Materials (S) Pte Ltd, which owns the remaining 75 per cent of the two companies.

The net disposal consideration, after subtracting the shareholder’s loans of US$10.77 million to be settled, was US$109.23 million, CMSB said in a filing with Bursa Malaysia today.

According to the group, its board views the proposed disposals as an opportunity to unlock and realise substantial value from its investments in the two companies.

"The proposed disposals will strengthen the group’s net assets substantially to RM3.38 billion from RM3.23 billion due to a RM147.62 million gain on disposal recognised,” it said.

CMSB said of the total gross proceeds of US$120 million, it planned to use US$30 million for future acquisitions or investments, US$24.08 million for capital expenditure, US$60 million for working capital, and US$5.92 million for estimated expenses related to the disposals.

"Barring any unforeseen circumstances, the proposed disposals are expected to be completed by the fourth quarter of 2022,” said CMSB. - Bernama