KLK Group to subscribe for 9.07 mln Synthomer shares for RM251.13 mln

KUALA LUMPUR, Oct 29  -- Kuala Lumpur Kepong Bhd’s (KLK) wholly-owned subsidiary, KL-Kepong International Ltd (KLKI) will subscribe for 9.07 million shares of the proposed placing shares in Synthomer PLC for £43.98 million or RM251.13 million.

In a filing with Bursa Malaysia today, KLK said upon completion of the placing on Nov 1, 2021, the group's shareholdings in Synthomer’s enlarged share capital will remain at 21.3 per cent.

"The subscription cost for the 9.07 million placing shares will be financed by KLK Group’s existing cash reserves and bank borrowings," it said.

On Thursday, Synthomer announced the proposed placing of its new ordinary shares, representing up to 10 per cent of Synthomer’s existing issued ordinary share capital to institutional investors.

The placing is expected to raise gross proceeds of approximately £200 million or RM1.14 billion and it will be used for the purpose of the acquisition of the Adhesive Resins business of Eastman Chemical Company for US$1.0 billion (US$1=RM4.15).

KLK said it has given Synthomer an Irrevocable Undertaking (IU) that the group will subscribe for 9.07 million placing shares, representing its 21.3 per cent interest in the existing share capital of Synthomer.

"KLK intends to assign to KLKI its rights to subscribe for the 9.07 million placing shares, and KLKI will thus subscribe for KLK’s rights under the placing.

"The board of directors of KLK shares the opinion that the acquisition is beneficial for Synthomer and through its Synthomer shareholding, to KLK. The IU given by KLK is to support the acquisition," said KLK. 

-- BERNAMA