Creador SPV buys 40% stake in CCK subsidiary

PETALING LAYA: CCK Consolidated Holdings Bhd has signed an agreement with Astrantia Sdn Bhd, a special-purpose vehicle (SPV) of Creador Sdn Bhd, which will see Astrantia making a RM170.3mil investment to acquire 40% stake in CCK’s subsidiary, PT Adilmart.

In a filing with Bursa Malaysia, CCK said the investment will facilitate the expansion of Adilmart, which specialises in the production of frozen food including sausages and other processed meat products.

Under the agreement, Astrantia’s acquisition will involve both the purchase of existing shares from CCK and the subscription to new shares, spread across three tranches.

The first tranche entails acquiring 27.2% equity interest in Adilmart for a total consideration of RM95.3mil.

Meanwhile, the second tranche, which serves as the initial share subscription, is aimed at funding the business’ growth and involves an additional investment of RM60mil.

The final tranche, referred to as the subsequent share subscription, is scheduled for a later date and is intended to further finance the business’ growth with RM15mil.

However, prior to the completion of the proposed investment, CCK and its wholly-owned subsidiary CCK Fresh Mart Sdn Bhd, which hold 96.25% and 3.75% equity interest in Adilmart, respectively, shall ensure that Adilmart conducts a restructuring exercise.

This exercise involves carving out Adilmart’s out-of-scope companies, namely its investments in PT Central Coldstorage Khatulistiwa and PT Bonanza Pratama Abadi.

Upon completion of the proposed investment, Adilmart will transition into a 60% subsidiary of CCK.