PETALING JAYA: A company linked to Sarawak timber and media baron Tan Sri Tiong Hiew King is acquiring a 13.75% stake in Borneo Edible Oils Sdn Bhd (BEO) from two Main Market-listed companies, Subur Tiasa Holdings Bhd
and Rimbunan Sawit Bhd, for RM5.35mil cumulatively.
The acquiring company, Tiong Toh Siong Holdings Sdn Bhd (TTSH), is a major shareholder of both Subur Tiasa and Rimbunan Sawit.
Subur Tiasa told Bursa Malaysia it will be selling its 7.5% stake in BEO for RM2.94mil to TTSH, in which Hiew King has a 10.21% direct and 22.15% indirect stake.
Subur Tiasa is expected to make a loss of RM3.06mil from the sale of BEO, which is involved in the trading of crude palm oil and palm oil processing.
Meanwhile, Rimbunan Sawit is also expected to incur a loss of RM2.59mil from the disposal.
Rimbunan Sawit will be selling its 6.25% equity interest in BEO for RM2.41mil to TTSH.
“The proposed disposal aligns with Subur Tiasa’s strategy to exit a non-core investment, recover a portion of investment cost, and allocate resources more effectively,” Subur Tiasa said in a filing with Bursa Malaysia.
The proposed disposal is expected to be completed by next March.
Rimbunan Sawit said the proceeds from the disposal will be used as working capital for its oil palm estates within 12 months after completion of sale.
Post-acquisition of the 13.75% stake from Subur Tiasa and Rimbunan Sawit, BEO will come under full control of Hiew King’s Rimbunan Hijau (Sarawak) Sdn Bhd which owns the remaining 86.25%.
