KUALA LUMPUR: CB INDUSTRIAL PRODUCT HOLDING [] Bhd is selling its equity interests in Sachiew PLANTATION []s Sdn Bhd and Empressa (M) Sdn Bhd for a total of RM268.06 million.
Sachiew is principally involved in the cultivation of oil palm and production of crude palm oil and palm kernel, while Empressa engages in the cultivation of oil palm and the operation of a palm oil mill.
In a filing Wednesday, June 1, CBIP said that it had entered into a share sale agreement with Yuwang Plantation Sdn Bhd (Yuwang), Goldhill Innovation Sdn Bhd and See Hong Chen & Sons Sdn Bhd (SHC)to dispose 1.5 million shares of RM1 each in Sachiew for RM108.12 million cash.
The company said it had also entered a share sale agreement with Yuwang, Multi Elite Enterprise Sdn Bhd and SHC to dispose 15 million shares of RM1 each in Empressa for RM159.94 million cash.
CBIP said the proposed disposals provide the company an opportunity to realise and unlock the value of its investment in Sachiew and Empresa at an attractive valuation whilst enabling it to streamline its business to focus on its core business operations of manufacturing palm oil equipment and the provision of engineering support.
CBIP said the gross proceeds of RM268.06 million from the disposal would be utilised for its working capital including for financing receivables, inventories, and repayment of bank borrowings.
It said the cash proceeds were estimated to be utilised within two years from the date of completion of the disposals.
Sachiew is principally involved in the cultivation of oil palm and production of crude palm oil and palm kernel, while Empressa engages in the cultivation of oil palm and the operation of a palm oil mill.
In a filing Wednesday, June 1, CBIP said that it had entered into a share sale agreement with Yuwang Plantation Sdn Bhd (Yuwang), Goldhill Innovation Sdn Bhd and See Hong Chen & Sons Sdn Bhd (SHC)to dispose 1.5 million shares of RM1 each in Sachiew for RM108.12 million cash.
The company said it had also entered a share sale agreement with Yuwang, Multi Elite Enterprise Sdn Bhd and SHC to dispose 15 million shares of RM1 each in Empressa for RM159.94 million cash.
CBIP said the proposed disposals provide the company an opportunity to realise and unlock the value of its investment in Sachiew and Empresa at an attractive valuation whilst enabling it to streamline its business to focus on its core business operations of manufacturing palm oil equipment and the provision of engineering support.
CBIP said the gross proceeds of RM268.06 million from the disposal would be utilised for its working capital including for financing receivables, inventories, and repayment of bank borrowings.
It said the cash proceeds were estimated to be utilised within two years from the date of completion of the disposals.
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