Mitsui & Co., Ltd. (TSE:8031) and FP Corporation (TSE:7947) entered into a conditional share sale agreement to acquire LEE Soon Seng Plastic Industries Sdn Bhd from SCGM Bhd (KLSE:SCGM) for MYR 544.38 million on May 9, 2022. 63,879,754 ordinary shares of LSSPI representing 60% equity interest in LSSPI to be disposed to Mitsui for a cash consideration of MYR 326.63 million. 42,586,502 LSSPI Shares, representing 40% equity interest in LSSPI to be disposed to FPCO for a cash consideration of MYR 217.75 million. The Disposal Consideration is to be settled entirely in cash. From the total MYR 544.38 million in disposal proceeds, MYR 425.56 million is earmarked for distribution to entitled SCGM shareholders while MYR 18.8 million will be used to fund the transfer of properties upon completion of the disposal. The transaction is conditional upon regulatory authority. The share sale agreement is inter-conditional to the completion of the transfer of three contiguous parcels of land with factory buildings and other ancillary buildings located at Mukim Senai, Kulai, Johor for a total cash consideration of MYR 18.80 million. LSSPI recorded a revenue of approximately MYR 246.50 million for the year ended April 30, 2021. LSSPI recorded a PAT of approximately MYR 33.95 million on April 30, 2021. Promilia Berhad and MainStreet Advisers Sdn Bhd acted as financial advisors to SCGM. The Proposals are expected to be completed by the third quarter of 2022. Asa of June 24, 2022, On behalf of the Board, HLIB wishes to announce that SCGM had entered into an addendum letter to the SSA with Mitsui and FPCO to vary and amend certain terms and conditions of the SSA and agree to allow termination of the earlier SPA with LSSPI in relation to the Transfer of Properties. The earlier SPA is terminated vide a termination letter dated between LSSPI and SCGM. Pursuant to Amendments, completion of the Proposed Divestment will take place simultaneously on Completion notwithstanding that any consent, approval, authorization, confirmation or waiver required from any person or any governmental or regulatory bodies necessary for the Proposed Divestment has not been obtained. SCGM and the Purchasers agree that the Purchasers shall pay to LSSPI for and on behalf of SCGM and HSB. The cash arising from the New SPA 1 Consideration and New SPA 2 Consideration will accrue to LSSPI. As of June 24, 2022, Hong Leong Investment Bank Berhad announce on behalf of the Board that the Advances is from Dato' Sri Lee Hock Seng, the Executive Chairman of SCGM. The Advances is to facilitate the purchase of the Subject Properties and for working capital of HSB such as administrative expenses and related sundry expenses. The Board has also further deliberated that SCGM had decided to exclude the repayment of the Advances in relation to the New SPAs of MYR 8 million and interest charge arising from the Advances of MYR 0.074306 million from the utilization of proceeds for the Proposed Disposal. Therefore, SCGM will reinstate the utilization of proceeds from the Disposal Consideration as per the announcement made on May 9, 2022 as follows: for Proposed Distribution Disposal Consideration is MYR 425.56 million and expected to complete Within 9 months, for Acquisition of new business/assets to be identified/ working capital Disposal Consideration of MYR 0.084024 million and expected to complete Within 24 months, for Transfer of Properties Disposal Consideration of MYR 0.0188 million and expected to complete Immediately upon the completion of the Proposed Disposal and for Estimated expenses for the Proposals of Disposal Consideration of MYR 0.016 million and expected to complete within two months. As on August 23, 2022, SCGM Bhds shareholders have approved the disposal. Capital reduction and repayment exercise, as well as special dividend payment, were expected to be completed by the fourth quarter of this year. As of August 31, 2022, FP Corporation completed the acquisition of 40% of stake in LEE Soon Seng Plastic Industries Sdn Bhd from SCGM Bhd (KLSE:SCGM) for MYR 217 million. DC Advisory acted as a financial advisor to SCGM Bhd.

Mitsui & Co., Ltd. (TSE:8031) and FP Corporation (TSE:7947) completed the acquisition of LEE Soon Seng Plastic Industries Sdn Bhd from SCGM Bhd (KLSE:SCGM) on August 31, 2022. LSSPI ceased to be a subsidiary of SCGM Group.