TMK Chemical in RM920 million deal to buy CCM
Chemical Company of Malaysia Bhd, with its roots in fertilisers, is a major company producing specialty chemicals and high-performance polymer coatings. (CCM pic)
KUALA LUMPUR: The inorganic chemicals specialist TMK Chemical Bhd has proposed to acquire 100% equity interest in Chemical Company of Malaysia Bhd, excluding certain assets, from Batu Kawan Bhd for an indicative purchase consideration of RM920 million on a cash-free, debt-free basis.
In a stock exchange filing, TMK Chemical said it had issued a non-binding letter of intent setting out the offer, including the full economic interest in its subsidiaries and associated companies, excluding certain assets comprising an associate company and two plots of land held by CCM.
“The board also wishes to announce that the company has received Batu Kawan Bhd’s acceptance-in-principle of the indicative non-binding offer today,” the company said.
The purchase would be satisfied through cash as well as new ordinary shares in TMK Chemical at RM1.909 per share which would result in Batu Kawan holding at least 20% of the enlarged issued shares in TMK Chemical.
The company said the issue price was arrived at based on the five-day volume weighted average market price of TMK Chemical shares traded on Bursa Malaysia as at May 31.
TMK Chemical’s shares closed four sen, or 1.75%, lower at RM2.25 apiece today.
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