KUALA LUMPUR, Nov 21 — KUB Malaysia Bhd has proposed to acquire 86.65 per cent shares in power cables and wires manufacturer Central Cables Bhd (CCB) from JAG Capital Holdings Sdn Bhd (JAG) for RM119.42 million.
In a filing with Bursa Malaysia, KUB said the purchase would be satisfied via the issuance of 199.04 million shares at an issue price of RM0.60 per share.
In conjunction with the proposed acquisition, KUB has also proposed to diversify its operations to include the manufacturing and supply of power cables and wires.
“The proposed acquisition will enable the group to venture into the manufacturing of power cables and wires, which is an upstream activity within the value chain of the power industry and evolve into a holistic power solutions provider via the integration of the cables manufacturing business with the power business.
“This strategic diversification also mitigates risks associated with market fluctuations associated with the power business and is expected to complement KUB Power Sdn Bhd’s strategic move as an integrated power solutions provider,” KUB said.
The company said it would extend a mandatory general offer to acquire all the remaining 13.35 per cent equity interest in CCB for an offer consideration of RM2.60 per CCB offer share, to be satisfied either wholly in cash or via the issuance of new ordinary shares in KUB at an issue price of RM0.60 per KUB shares. — Bernama