KUALA LUMPUR: C.I. Holdings Bhd (CIH) expects to conclude the disposal of its beverage subsidiary Permanis Sdn Bhd (Permanis) to Japan's Asahi Group Holdings Ltd (Asahi) within one or two weeks and expects to pay a minimum of RM4 per share in the form of special dividend to its shareholders.
On July 21, CIH signed an agreement with Asahi for the disposal of Permanis for an acquisition price of RM820 million in cash, representing 70 million shares.
Group managing director Datuk Johari Abdul Ghani said CIH is now looking to acquire a company with potential but weak management, adding that CIH is not in a rush to buy a company.
"At this moment, I think we will distribute a minimum of RM4 to shareholders back so that will leave about RM200 million over.
"So with that money we will try (to acquire a new business), but if we cannot find anything concrete in the future, we may distribute back to shareholders in the form of capital repayment or special dividend," he told reporters after the company's annual general meeting here today.
Meanwhile, chairman Datuk Seri Abdul Ghani Abdul Aziz said in the annual report the company expects its core earnings to be driven primarily by the tap and sanitary ware division after the proposed disposal.
"The tap and sanitary ware division has grown to become a materially-sized and profitable business with revenue of RM43.49 million and net profit before tax of RM8.42 million in the financial year ended June 30, 2011," he added.
Permanis, which is PepsiCo Inc's bottler in Malaysia, has a distribution network of about 40,000 outlets nationwide and 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. It also manufactures its own brands of drinks under the Chill, Excel, Frost, Bleu and Shot trademarks, according to its website. - BERNAMA
On July 21, CIH signed an agreement with Asahi for the disposal of Permanis for an acquisition price of RM820 million in cash, representing 70 million shares.
Group managing director Datuk Johari Abdul Ghani said CIH is now looking to acquire a company with potential but weak management, adding that CIH is not in a rush to buy a company.
"At this moment, I think we will distribute a minimum of RM4 to shareholders back so that will leave about RM200 million over.
"So with that money we will try (to acquire a new business), but if we cannot find anything concrete in the future, we may distribute back to shareholders in the form of capital repayment or special dividend," he told reporters after the company's annual general meeting here today.
Meanwhile, chairman Datuk Seri Abdul Ghani Abdul Aziz said in the annual report the company expects its core earnings to be driven primarily by the tap and sanitary ware division after the proposed disposal.
"The tap and sanitary ware division has grown to become a materially-sized and profitable business with revenue of RM43.49 million and net profit before tax of RM8.42 million in the financial year ended June 30, 2011," he added.
Permanis, which is PepsiCo Inc's bottler in Malaysia, has a distribution network of about 40,000 outlets nationwide and 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. It also manufactures its own brands of drinks under the Chill, Excel, Frost, Bleu and Shot trademarks, according to its website. - BERNAMA
