OM Holdings to buy out Cahya Mata Sarawak’s stake in Samalaju smelting project


KUALA LUMPUR: OM Holdings Ltd’s subsidiary OM Materials (S) Pte Ltd has entered right into a take care of Samalaju Industries Sdn Bhd, a unit of Cahya Mata Sarawak Bhd, that can see the latter exit its funding in the ferrosilicon and manganese alloy smelting advanced in Samalaju Industrial Park in Sarawak.

In separate filings with Bursa Malaysia, OM Holdings and Cahya Mata Sarawak mentioned they’ve inked a binding letter of supply for the latter to promote its whole fairness curiosity in OM Materials (Sarawak) Sdn Bhd and OM Materials (Samalaju) Sdn Bhd to OM Holdings for US$120mil (RM520.72mil).

Accordingly, OM Holdings, a manganese and silicon metals group, would enhance its stake in the goal firms to 100% from the present 75% whereas building group Cahya Mata Sarawak would exit the businesses.

“The acquisition is advantageous to the OMH Group and its technique of investing additional in ferroalloy smelting, constructing organically on the success of the OM Sarawak smelter facility,” mentioned OM Holdings in an announcement.

Under the phrases of the settlement, OM Materials will buy 165.59 million shares and 43.69 million irredeemable convertible choice shares in OM Sarawak, representing 25% of the issued and paid up share capital and choice share capital in the corporate.

It may also buy 32.08 million shares in OM Samalaju, representing 25% of the issued and paid up share capital of the corporate.

OM Holdings mentioned it intends to fund the acquisition via a mix of current money reserves, future working money flows, financial institution borrowings and fairness elevating in the second half of 2022.

“We respect the previous contributions by our companion, Cahya Mata Sarawak Bhd, to the Sarawak Project.

“Together with our latest secondary itemizing in Bursa, Malaysia, this transaction marks a key milestone in our journey and enhances the broader OMH technique of rising our Sarawak smelter and turning into the main provider of ferroalloys globally – constructing important worth for all shareholders,” mentioned OM Holdings govt chairman and CEO Low Ngee Tong.

Trading in the shares of OM Holdings was halted from 9am to 10am in the present day in gentle of the announcement.

As at 10.30am, shares in OM Holdings had been up 13 sen or 4.73% to RM2.88 every on the again of 48,200 shares traded whereas Cahya Mata Sarawak rose six sen or 5.61% to RM1.13 apiece with 2.8 million models exchanging fingers.

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