KUALA LUMPUR, Nov 17 -- Permodalan Nasional Bhd (PNB) and its unit trust funds are selling their combined 56.32 per cent stake in Chemical Company of Malaysia Bhd (CCM) to plantation and industrial chemicals group Batu Kawan Bhd (BKB) for RM292.79 million.
PNB and AmanahRaya Trustees Bhd -- the trustee for Amanah Saham Malaysia, Amanah Saham Bumiputera and Amanah Saham Bumiputera 3-Didik unit trust funds -- today inked a conditional agreement with BKB to sell 94.45 million shares in CCM at RM3.10 apiece.
In a filing with Bursa Malaysia today, BKB said on the agreement becoming unconditional, it would make a mandatory general offer but it intended to maintain CCM's listing on the Main Market.
The acquisition was expected to be completed by the first quarter of next year, it said.
Meanwhile, PNB said in a statement that the price of RM3.10 represented a 69 per cent premium to the three-month volume weighted average share price.
Its president and group chief executive, Ahmad Zulqarnain Onn, said the divestment was part of PNB’s asset diversification strategy to rebalance the portfolio and was consistent with its efforts to continuously enhance value and deliver sustainable returns to its unit holders.
“A robust sale and price discovery process was conducted by our adviser Maybank Investment Bank Bhd and we are pleased that the final sale price represents a significant premium to the market price.
“As with other investment and divestment decisions made by PNB, this divestment has undergone a rigorous due diligence and a multi-layer governance process to ensure it meets PNB’s stringent investment policies and objectives,” he said.
CCM is a reputable manufacturer of chlor-alkali and polymer coating products, being one of the top three polymer coatings for the glove industry and one of the largest producers of chlorine used for the treatment of water supply.
During the period when CCM was one of PNB’s strategic companies, it had undergone various initiatives including the demerger of CCM Duopharma Biotech Bhd from CCM in 2017 which gave the company the agility to pursue its growth strategy in order to ensure future sustainability.
Moving forward, PNB said BKB’s extensive experience and knowledge in the chemicals industry would make it a strategic fit for CCM, to strengthen its position as one of the leading chemicals companies in Malaysia.
“At the same time, expanding BKB’s involvement in industrial chemicals manufacturing will enable CCM to better serve a wider range of customers and geographical markets,” it added.
BKB said the proposed acquisition offered it an opportunity to acquire an established chemicals and polymers manufacturer and increase the group's market presence as a chlor-alkali chemicals maker.
It also provided an opportunity to unlock value through the realisation of operational inefficiencies in logistics, distribution and procurement, the company said.
Malaysian National News Agency
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