KUALA LUMPUR: Cash-rich CI Holdings Bhd (CIH) is still looking for a new business to buy after selling its beverage-making unit Permanis Sdn Bhd for RM820 million.
In the meantime, it will focus on its tapware and sanitary ware business through its holding in Doe and Potex. For the year to June 30 2011, the division reported some RM43.49 million in revenue.
Permanis, which is PepsiCo Inc's bottler in Malaysia, contributes up to 90 per cent of CIH's net profit with the remainder coming from its tap and sanitary ware division.
Under an exclusive franchise, Permanis produces world-renowned brands such as Pepsi, Mirinda, 7-Up, Gatorade, Lipton, Tropicana and Evervess.
CIH will conclude the sale to Japan's Asahi Group Holdings Ltd within the next two weeks. It will keep some RM200 million in cash for acquisitions once it has paid special dividend to shareholders.
Managing director Datuk Johari Abd Ghani said CIH is keen on buying low-profile companies with big potential.
"My expertise is in turning around troubled companies or companies that have the potential to grow, but with weak management. (However) at this moment, we are not in a rush," he told a media briefing after the group's annual general meeting yesterday.
Following the sale, CIH will have a year to look for a new core business or return the cash to shareholders.
"I think it is better for us to give back to shareholders if we can't conclude a suitable company to acquire, and in future, when we find something good, we can call for rights issue," said Johari.
According to its circular, CIH will distribute at least RM568 million, or RM4 per share, to its shareholders. If it couldn't find a suitable asset to buy in six months, it would consider paying back the entire proceeds of RM820 million, which works out to about RM5.77 per share to shareholders.
Johari declined to elaborate which sector he plans to venture next, but in earlier reports, CIH had ruled out the oil and gas sector as well as the property business, citing the lack of technical expertise.
CIH is also barred from the ready-to-drink beverages business in Malaysia over the next three years based on conditions set in the Permanis deal.
In the meantime, it will focus on its tapware and sanitary ware business through its holding in Doe and Potex. For the year to June 30 2011, the division reported some RM43.49 million in revenue.
Permanis, which is PepsiCo Inc's bottler in Malaysia, contributes up to 90 per cent of CIH's net profit with the remainder coming from its tap and sanitary ware division.
Under an exclusive franchise, Permanis produces world-renowned brands such as Pepsi, Mirinda, 7-Up, Gatorade, Lipton, Tropicana and Evervess.
CIH will conclude the sale to Japan's Asahi Group Holdings Ltd within the next two weeks. It will keep some RM200 million in cash for acquisitions once it has paid special dividend to shareholders.
Managing director Datuk Johari Abd Ghani said CIH is keen on buying low-profile companies with big potential.
"My expertise is in turning around troubled companies or companies that have the potential to grow, but with weak management. (However) at this moment, we are not in a rush," he told a media briefing after the group's annual general meeting yesterday.
Following the sale, CIH will have a year to look for a new core business or return the cash to shareholders.
"I think it is better for us to give back to shareholders if we can't conclude a suitable company to acquire, and in future, when we find something good, we can call for rights issue," said Johari.
According to its circular, CIH will distribute at least RM568 million, or RM4 per share, to its shareholders. If it couldn't find a suitable asset to buy in six months, it would consider paying back the entire proceeds of RM820 million, which works out to about RM5.77 per share to shareholders.
Johari declined to elaborate which sector he plans to venture next, but in earlier reports, CIH had ruled out the oil and gas sector as well as the property business, citing the lack of technical expertise.
CIH is also barred from the ready-to-drink beverages business in Malaysia over the next three years based on conditions set in the Permanis deal.
