PETALING JAYA: TMK Chemical Bhd
has proposed acquiring Chemical Company of Malaysia Bhd (CCM) from Batu Kawan Bhd (BKB) for an indicative RM920mil.
In a Bursa Malaysia filing on Friday, TMK stated it had submitted a non-binding letter of intent to acquire BKB’s entire 100% equity interest in CCM, including CCM’s subsidiaries and associated companies, excluding certain assets comprising associate company Orica-CCM Energy Systems Sdn Bhd and two parcels of land.
TMK added it had received BKB’s acceptance-in-principle of the offer, paving the way for due diligence and negotiations on a definitive sale and purchase agreement.
The proposed acquisition will be undertaken on a cash-free, debt-free basis, with the RM920mil indicative purchase consideration to be satisfied through a combination of cash and the issuance of new TMK shares.
The new shares will be issued at RM1.9098 a piece, based on TMK’s five-day volume-weighted average market price as at May 31, 2026.
Upon completion, BKB is expected to hold at least a 20% stake in the enlarged TMK group.
TMK noted the proposal remains subject to customary due diligence covering financial, tax, legal, commercial and operational matters, as well as the advice of an independent adviser and the execution of definitive transaction documents.
In a separate exchange filing, BKB stated its board, except for Tan Sri Lee Oi Hian, Datuk Lee Hau Hian and Lee Yuan Zhang who are the interested directors in the proposed transaction, has deliberated on the matter and has resolved to accept-in-principle the indicative non-binding offer.
BKB added the corporate proposal is still subject to, amongst others, the advice from an independent adviser to be appointed, the completion of the customary due diligence exercise on CCM Group and the execution of a sale and purchase agreement between the parties.
"For the avoidance of doubt, the proposed transaction, if it transpires, will be a related party transaction, and will be subject to the approval of the non-interested shareholders of the company at an extraordinary general meeting to be convened," BKB noted.
