KUALA LUMPUR, Dec 28 — Batu Kawan Bhd (BKB) today issued the offer document in relation to its unconditional mandatory take-over offer for all shares in Chemical Company of Malaysia Bhd (CCM) which it does not own.
In a filing with Bursa Malaysia, BKB said the cash offer of RM3.10 per share would be open for acceptances until 5 pm on Jan 18, 2021, unless extended or revised according to the Rules on Take-overs, Mergers and Compulsory Acquisitions.
It said an independent advice circular would be issued latest by January 7, 2021.
BKB said that it intended to maintain the listing status of CCM on the Main Market of Bursa Securities unless it received valid acceptances resulting in BKB and its associates holding in aggregate 90 per cent or more of the shares.
On December 11, the company completed the purchase of 56.32 per cent equity interest in CCM from Permodalan Nasional Bhd and Amanahraya Trustees Bhd for RM292.79 million or RM3.10 per share. This raised its stake in CCM to about 59.73 per cent.
According to BKB, the acquisition of an established chemicals and polymers manufacturer is complementary to the BKB group and is expected to strengthen the group’s business activities in the chemical sector with an additional product portfolio and increased regional market presence.
It will also increase the group’s market presence as a chlor-alkali chemicals manufacturer.
The CCM group is a leading supplier of chlor-alkali chemicals in Malaysia and the addition of its production capacity and manufacturing facilities will enable the BKB Group to expand its production capacity and to serve more customers,
“It is also an opportunity to unlock value through the realisation of operational efficiencies in logistics via consolidation of shipment of raw material purchases, distribution to cover a wider geographical reach as well as cost synergies realised from economies of scale,” it said.
On future plans for CCM and its employees, BKB said it would continue the existing businesses of the CCM group, principally the manufacturing and marketing of chlor-alkali chemicals and polymer chemicals.
It also said there was no immediate plan to introduce any major change to the CCM group’s existing core businesses, liquidate any of the companies within the group, dispose of any major assets or undertake any major redeployment of the group’s fixed assets.
“BKB has no immediate plans to dismiss or make redundant the employees of the CCM group as a direct consequence of the offer.
“Nevertheless, as with any organisation, BKB may from time to time review the human resources requirements of CCM Group to improve the efficiency of its operations and businesses and/or to optimise staff productivity,” it added.
BKB, which through its subsidiaries is involved in chemical manufacturing, plantation, logistics, property investment, property development and investment holding, confirmed that it had sufficient financial resources to satisfy full acceptance of the offer.
CCM ended the morning session today at RM3.09, up one sen from yesterday’s close. — Bernama
