TMK Chemical Proposes RM920 Mln Acquisition Of CCM From Batu Kawan

KUALA LUMPUR, June 12 (Bernama) -- TMK Chemical Bhd has proposed to acquire 100 per cent equity interest in Chemical Company of Malaysia Bhd (CCM), excluding certain assets, from Batu Kawan Bhd (BKB) for an indicative purchase consideration of RM920 million on a cash-free, debt-free basis.

TMK Chemical said it had issued a non-binding letter of intent to BKB setting out the offer to acquire CCM, including the full economic interest in its subsidiaries and associated companies, excluding certain assets comprising an associate company and two parcels of land held by CCM.

"The board also wishes to announce that the company has received BKB's acceptance-in-principle of the indicative non-binding offer today,” the inorganic chemicals specialist said in a stock exchange filing.

The indicative purchase consideration would be satisfied through cash as well as the issuance of new ordinary shares in TMK Chemical at RM1.9098 per share.

The company that the issue price was arrived at based on the five-day volume weighted average market price of TMK Chemical shares traded on Bursa Malaysia Securities Bhd as at May 31, 2026. 

“The issuance of new TMK Chemical shares is expected to result in BKB holding at least 20 per cent of the enlarged issued shares in TMK Chemical,” it added.

TMK Chemical shares closed four sen, or 1.75 per cent, lower at RM2.25 apiece today. 

-- BERNAMA