CMSB to acquire extra shares in CMS Premix, CMS Premix (Miri) for RM12m cash

KUALA LUMPUR: Cahya Mata Sarawak Bhd (CMSB) has proposed to acquire additional stakes in CMS Premix Sdn Bhd and CMS Premix (Miri) Sdn Bhd from Mintaro Sdn Bhd for a total of RM12 million cash, it announced on Bursa Malaysia on Monday, Sept 13.

The group had entered into two share sale agreements (SSA) with Mintaro to acquire 720,000 shares in CMS Premix, representing a 40% stake for RM10.5 million, as well as 120,000 shares in CMS Premix (Miri), representing a 20% stake for RM1.5 million cash.

CMS Premix and CMS Premix (Miri) are mainly engaged in the production and sale of premix, with the former also producing and selling emulsion.

Under the terms of the SSAs in relation to the acquisitions, the sum payable to Mintaro must be satisfied within 14 business days from the date of the agreements.

The purchases will be internally funded, said the group.

Following the completion of the SSAs, the director nominated by Mintaro for each company will tender their resignation, the group said.

According to the filing, the prices for both stakes were arrived at on a "willing buyer-willing seller basis" after taking into consideration the unaudited net assets of RM33 million and RM10.13 million of CMS Premix and CMS Premix (Miri) respectively as at June 30, 2010.

Based on the audited financial statements of CMS Premix for the financial year ended (FYE) Dec 31, 2009, the company had recorded a net profit of RM9.41 million.

CMS Premix (Miri)'s audited statements show that it had recorded a net profit of RM2.54 million for FYE Dec 31, 2009.

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