KLK Land Sdn Bhd entered into a share sale agreement to acquire Batu Kawan Holdings Sdn Bhd from Batu Kawan Berhad (KLSE:BKAWAN) for MYR 93 million on July 23, 2021. The proposed acquisition will be funded by a combination of KLKs existing cash reserves, and bank borrowings. The purchase consideration shall be satisfied in cash by the KLK Land Sdn Bhd at completion. The SSA may be terminated upon occurrence of the following (a) breach of the SSA which the defaulting party has failed to remedy within seven days from the non-defaulting partys notice to remedy such breach; or (b) a force majeure event which prolongs for a continuous period exceeding 60 days from the date of declaration of the force majeure event by either the KLK Land Sdn Bhd or the Batu Kawan Berhad, affected by such event. The proposed acquisition is not subject to KLK shareholders approval and any relevant government authorities. The proposed acquisition is expected to be completed in the 3rd Quarter of 2021, subject to the fulfilment of all conditions precedent in the agreement. As of August 4, 2021, KLK Land Sdn Bhd fullfilled all the conditions precedent.
KLK Land Sdn Bhd completed the acquisition of Batu Kawan Holdings Sdn Bhd from Batu Kawan Berhad (KLSE:BKAWAN) on August 4, 2021.