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BUSINESS

UEM Sunrise's indirect unit divests Roc-Union stake, exits South African market

19/08/2022 08:38 PM

KUALA LUMPUR, Aug 19 (Bernama) -- UEM Sunrise Bhd’s indirect wholly owned subsidiary UEM Sunrise South Africa Proprietary Ltd (seller) plans to divest its entire equity interest of 80.4 per cent held in Roc-Union Proprietary Ltd and claims at a total consideration of 142.6 million rand (RM38.0 million).

The seller, which is a wholly owned subsidiary of UEM Sunrise Overseas Corporation Sdn Bhd (UEMSOC), has entered into a sale of shares and claims agreement (SSCA) with Olive Investment Trust (purchaser).

“The purchaser is also entering into a similar arrangement to acquire the remaining equity interest of 19.6 per cent in Roc-Union held by a local investor,” UEM Sunrise said in a filing with Bursa Malaysia today.

On the rationale of the deal, it said the decision to dispose of its entire equity in Roc-Union is in line with the company’s turnaround strategic plan as it allows the company to realign its operations geographically and redirect resources to businesses and areas which offer greater potential.

Meanwhile, the consideration is based on Roc-Union’s audited accounts for the financial year ended Dec 31, 2021 after considering Roc-Union’s share values and existing shareholder’s advances.

“Ten per cent (14.3 million rand) of the consideration is paid by way of a bank guarantee to the attorneys on behalf of the seller, while the balance of 90 per cent (128.3 million rand) would also be paid on the closing date.

“Upon the completion of the proposed divestment, Roc-Union will cease to be a subsidiary (indirect) of UEM Sunrise. The seller and UEMSOC would then cease operations in Durban, South Africa,” it added.

-- BERNAMA

 

 


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