KUB to acquire remaining 40% stake in Mukah plantations unit for RM60mil


KUALA LUMPUR: KUB Malaysia Bhd via its wholly-owned subsidiary KUB Agro Holdings Bhd has entered a deal to purchase 2.6 million shares or 40% equity interest it does not already own in KUB Sepadu Sdn Bhd for RM60mil cash.

In a filing with Bursa Malaysia, KUB said its unit had signed a share sale and purchase agreement with outgoing shareholders Medan Sepadu Sdn Bhd and Lembaga Amanah Kebajikan Kaum Melanau Sarawak, which own 30% and 10% of the purchase stake respectively.

It said KUB Agro will purchase the stake from the outgoing shareholders on an as is where is basis free from all liens, pledges, charges or encumbrances together with all rights attached.

KUB added that the purchase will be financed through its internally generated funds.

KUB Sepadu is the owner of Sungai Buloh Plantation and Sungai Nape Plantation, totalling about 4,616 hectares of oil palm plantations in Mukah, Sarawak.

According to KUB, the market value of KUB Sepadu's estates as appraised by an independent valuer is RM100.1mil.

There is also an estimated surplus of other assets including cash, bank and fixed deposits balances over liabilities of about RM31mil as at Dec 14, 2023.

KUB, which currently holds 60% ownership in KUB Sepadu, had settled a dispute with the other shareholders through the setting aside of a winding-up order against the company by way of a consent order.

"The consent order will enable the setting aside of the winding-up order against KUB Sepadu and allow it to operate back as a going concern whilst the proposed acquisition will enable KUB Agro (and indirectly KUB) to have full ownership and management control of KUB Sepadu and hence allow the Board to deal with KUB Sepadu’s estates as it deems fit," it said.

"The proposed acquisition is crucial to enable KUB to resume control over the operations of KUBS and to prevent deterioration of KUB Sepadu’s estates should the same continue to be managed by the liquidators over a prolonged period."

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KUB , plantation , oil palm

   

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