Mega First to acquire Sime Darby Plantation’s Emery firms for RM38m
19 Aug 2021
Mega First Corp Bhd aims to acquire Emery Oleochemicals (M) Sdn Bhd and Emery Specialty Chemicals Sdn Bhd, a 50:50 joint venture companies of Sime Darby Plantation Bhd (SDP) and PTTGC International Pte Ltd for an estimated RM38 million.
According to the group’s Bursa filing, the acquisition will be executed by its 50:50 joint venture company with 9M Technologies Sdn Bhd, Edenor Technology Sdn Bhd.
It noted that the consideration is derived from an enterprise value of RM243 million less the target net debt of RM205 million. Consequently, the final sale consideration will be subject to adjustments based on the companies’ net working capital and net debt position at completion.
In a separate filing, SDP pointed out that the divestment is condition upon the restructuring of Emery Group into separate standalone groups in respect of its business in Asia Pacific, North America and Europe.
Post restructuring, Emery’s companies in North America and Europe will be transferred to SDP and PTTGC with a 50:50 direct stake via Emery Oleochemicals UK Ltd.
Megafirst said the acquisition is in line with its talent recruitment objective which will help its plantation division’s core technical capabilities when it expands into coconuts and other agricultural produce processing in two to three years.
It revealed that the group is investing RM20 million for its 50% in Edenor’s paid-up capital through internally generated funds.
In the event that Emery’s existing lenders do not consent to a change in control, the group will utilise its existing stand-by credit facilities of up to RM255 million to temporarily pay the lenders.
Source: The Sun Daily