KUALA LUMPUR: Sungei Bagan Rubber Company (Malaya) Bhd
has clarified that the transfer of agricultural land in Semenyih, Selangor, which was initially part of its acquisition deal with Kuchai Development Bhd, has been entirely excluded from the agreement signed on Dec 29, 2023
Consequently, the acquisition price and the number of consideration shares to be issued by Sungei Bagan for the acquisition of Kuchai Development have been adjusted to exclude the RM7.68 million valuation of the agricultural land.
"As such, the disposal price has been revised from RM275.47 million to RM267.78 million, and the number of consideration shares to be issued has been reduced from 27.52 million to 26.75 million," the company said in a filing with Bursa Malaysia.
Furthermore, the master sale and purchase agreement (as amended and varied by the supplemental master sale and purchase agreement dated Feb 28, 2024 and supplemental letters dated March 18, 2024 and June 26, 2024) became unconditional on Oct 3, 2024.
On Dec 29, 2023, Kuchai Development announced that it has entered into a conditional master sale and purchase agreement with Sungei Bagan Rubber, where the latter is to acquire the former for a disposal consideration of RM275.47 million.
The transaction would be satisfied entirely via the issuance of 27.52 million new Sungei Bagan shares at an issue price of RM10.01 per share.
It said the disposal will allow the parties to consolidate, synergise and merge their investments. - Bernama
