Batu Kawan Berhad (KLSE:BKAWAN) entered into a conditional share purchase agreement to acquire 56.32% stake in Chemical Company of Malaysia Berhad (KLSE:CCM) from Permodalan Nasional Berhad and AMANAH Saham Malaysia, Amanah Saham Bumiputera and Amanah Saham Didik, funds managed by Amanah Saham Nasional Bhd for approximately MYR 290 million on November 17, 2020. Batu Kawan will acquire 94.45 million shares of Chemical Company at a price of MYR 3.10 per share. Batu Kawan will not assume any liabilities of Chemical Company.

Upon closing of the acquisition, Batu Kawan Berhad y will be obliged to undertake a mandatory take-over pursuant to the Malaysian Code on Take-Overs and Merger 2016 and the Rules on Take-Overs, Mergers and Compulsory Acquisitions issued by the Securities Commission Malaysia at the same price per share. On completion, CCM will become a subsidiary of Batu. In a related transaction, Batu Kawan made an offer to acquire the remaining shares of Chemical Company.

The transaction will be funded via internally generated funds. The transaction is subject to the consent of a lender bank in respect of the banking facilities provided to the CCM Group for the transfer of the Sale Shares. The Proposals are not subject to approval of the shareholders of Batu Kawan.

As on december 7, 2020, agreement become unconditional. The transaction is expected to complete by the first quarter of 2021. Tan Wei Han and Christopher San of CIMB Investment Bank Berhad acted as financial advisors to Batu Kawan.

Maybank Investment Bank Berhad acted as financial advisor for Permodalan Nasional.