KUALA LUMPUR: Chemical Company of Malaysia Bhd (CCM) will undergo an internal restructuring in order to streamline its operations and reduce the level of inter-company borrowings.
According to an announcement to Bursa Malaysia, CCM’s wholly-owned subsidiary Usaha Pharma (M) Sdn Bhd will acquire the entire equity interest of Innovative Polymer Systems Sdn Bhd, Innovative Resins Sdn Bhd and Delta Polymer Systems Sdn Bhd, which are also subsidiaries of the parent company.
The three companies will be acquired from CCM and CCM Usaha Kimia (M) Sdn Bhd for a total consideration of around RM126.4 million. Usaha Pharma will also acquire the businesses and assets of Innovative Polymer and Delta Polymer.
To reduce the inter-company borrowings of CCM, Usaha Kimia, CCM Agriculture Sdn Bhd, CCM Agriculture (Sabah) Sdn Bhd and CCM International Sdn Bhd will issue new shares to its parent.
According to the announcement, the rationale behind the acquisition is to streamline and realign the businesses and business units of Innovative Polymer, Delta Polymer and Innovative Resins.
“The proposed businesses and assets acquisitions of Innovative Polymer and Delta Polymer are expected to promote synergy within the Innovative group through the consolidation of the polymer businesses into a single entity,” stated CCM.
Innovative Polymer is in the business of manufacturing and selling hydrogel coating products, while Delta Polymer deals in industrial cleaner and coating products.
Usaha Pharma was formerly CCM’s pharmacy arm, having operated a chain of pharmaceutical retail outlets and traded in pharmaceutical and healthcare products. Usaha Pharma closed down all its pharmacy outlets in 2007 and was dormant.
The proposed internal restructuring is not expected to have any material effect on CCM’s share capital, shareholding structure, earnings per share, net assets per share and gearing of the company for the current financial year.
According to an announcement to Bursa Malaysia, CCM’s wholly-owned subsidiary Usaha Pharma (M) Sdn Bhd will acquire the entire equity interest of Innovative Polymer Systems Sdn Bhd, Innovative Resins Sdn Bhd and Delta Polymer Systems Sdn Bhd, which are also subsidiaries of the parent company.
The three companies will be acquired from CCM and CCM Usaha Kimia (M) Sdn Bhd for a total consideration of around RM126.4 million. Usaha Pharma will also acquire the businesses and assets of Innovative Polymer and Delta Polymer.
To reduce the inter-company borrowings of CCM, Usaha Kimia, CCM Agriculture Sdn Bhd, CCM Agriculture (Sabah) Sdn Bhd and CCM International Sdn Bhd will issue new shares to its parent.
According to the announcement, the rationale behind the acquisition is to streamline and realign the businesses and business units of Innovative Polymer, Delta Polymer and Innovative Resins.
“The proposed businesses and assets acquisitions of Innovative Polymer and Delta Polymer are expected to promote synergy within the Innovative group through the consolidation of the polymer businesses into a single entity,” stated CCM.
Innovative Polymer is in the business of manufacturing and selling hydrogel coating products, while Delta Polymer deals in industrial cleaner and coating products.
Usaha Pharma was formerly CCM’s pharmacy arm, having operated a chain of pharmaceutical retail outlets and traded in pharmaceutical and healthcare products. Usaha Pharma closed down all its pharmacy outlets in 2007 and was dormant.
The proposed internal restructuring is not expected to have any material effect on CCM’s share capital, shareholding structure, earnings per share, net assets per share and gearing of the company for the current financial year.
