Malaysia's PNB to sell 56 pct stake in chemicals firm for $71 million

KUALA LUMPUR: Permodalan Nasional Bhd (PNB), one of Malaysia's largest fund managers, said late Tuesday it will sell its entire 56.3% stake in Chemical Company of Malaysia Bhd (CCM) for 292.8 million ringgit ($71.37 million).

CCM, a manufacturer and marketer of chlor-alkali chemicals and polymers chemicals used in rubber gloves, oleochemical, oil and petrochemicals, said in a bourse filing that it received a notification from PNB stating the fund manager has entered into a deal with chemical manufacturer Batu Kawan Berhad.

Under the agreement, PNB will sell 94.45 million ordinary shares to Batu Kawan that is equivalent to an 11.1% premium to CCM's closing price on Tuesday.

Shares of CCM opened 7.2% higher on Wednesday.

"This divestment is part of PNB's asset diversification strategy to rebalance the portfolio," PNB President and Group Chief Executive Ahmad Zulqarnain Onn said in a statement.

The sale will trigger a mandatory general offer by Batu Kawan for the remaining shares, but the acquirer said it intends to maintain the listing status of CCM.