Malaysia's PNB to sell 56 pct stake in chemicals firm for $71 million
PNB will sell 94.45 million ordinary shares to Batu Kawan that is equivalent to an 11.1 pct premium to CCM's closing price on Tuesday. Astro AWANI pic
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.Enable Ginger Cannot connect to Ginger Check your internet connection
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