KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has reached an agreement with Batu Kawan Bhd to sell its 56.3 per cent stake in Chemical Company of Malaysia Bhd (CCM) for RM292.8 million.
PNB president and chief executive officer Ahmad Zulqarnain Onn said the divestment was part of the fund's asset diversification strategy to rebalance the portfolio and was consistent with its efforts to continuously enhance value and deliver sustainable returns to its unit holders.
"A robust sale and price discovery process was conducted by our adviser Maybank Investment Bank Bhd and we are pleased that the final sale price represents a significant premium to the market price," said Zulqarnain.
PNB said the price represented a 69 per cent premium to CCM's three-month volume weighted average share price.
The sale will trigger a mandatory general offer by Batu Kawan for the remaining shares in CCM.
According to PNB, the divestment had undergone a rigorous due diligence and a multi-layer governance process to ensure it meets the fund's stringent investment policies and objectives.
It said CCM was a reputable manufacturer of chlor-alkali and polymer coating products in Malaysia, being one of the top three polymer coatings providers for the glove industry and one of the largest producers of chlorine used for the treatment of water supply.
"With Batu Kawan's extensive experience and knowledge in the chemicals industry, PNB believes that it would make a strategic fit for CCM, strengthening its position as one of the leading chemicals companies in Malaysia.
"At the same time, expanding Batu Kawan's involvement in industrial chemicals manufacturing will enable CCM to better serve a wider range of customers and geographical markets," it said.
Zulqarnain said PNB had greatly valued the trust and confidence that its unit holders had placed in it to generate returns.
"As custodians to the wealth of millions of Bumiputera and Malaysian unit holders, PNB is always guided by our mandate in all investment decisions and remains committed to the highest standards of conduct in delivering returns to our unit holders," he added.