By Khairul Khalid
DRB-Hicom’s offer to dispose its wholly-owned subsidiary Kuala Lumpur Airport Services Sdn Bhd (KLAS) plus a land parcel to Pos Malaysia Bhd for a consideration of RM835.16 million has been accepted by the latter, according to a regulatory filing today.
“The board of directors of Pos Malaysia wishes to announce that on Dec 16, 2015, it has accepted the conditional offer as outlined in the offer letter by DRB-Hicom to Pos Malaysia dated Dec 10, 2015, subject to the results/findings of the due diligence exercise to be conducted by Pos Malaysia and execution of the sale and purchase agreements within the exclusivity period,” said Pos Malaysia in a statement.
The two main components of DRB-Hicom’s proposal are the sale of KLAS for RM766.16 million as well as the disposal of a 4.01ha, freehold industrial land parcel in Shah Alam, Selangor valued at RM69 million.
The total sum RM835.16 million will be satisfied by the issuance of 250.8 million new Pos Malaysia shares at the issue price of RM3.33 per share – a 13% premium to Pos Malaysia’s closing price of RM2.95 per share on the day the offer was announced.
If the offer is approved by shareholders, DRB-Hicom will increase its current stake in Pos Malaysia from approximately 32% currently to about 54%.
According to DRB-Hicom, the proposed sale is to streamline the operational efficiency and enhance synergies of the company’s postal and logistics businesses by consolidating them under Pos Malaysia.
Another condition of the DRB-Hicom offer is that two parcels of agricultural land measuring 100 acres located in Kubang Pasu, Kedah belonging to KLAS are transferred to a DRB-Hicom subsidiary at their prevailing nett book value on the date of the transfer.
The land transfer is related to loans amounting to RM552.9 million that KLAS owes to DRB-Hicom.
According to Pos Malaysia, the terms and conditions of the sale and purchase agreements shall be mutually agreed upon by the respective parties and shall be executed within three months from the acceptance of the offer or such other mutually agreed period.
“The proposed acquisitions of KLAS and the Section 28 Land would be conditional upon, among others, the approval by the company’s shareholders at an extraordinary general meeting to be convened,” said Pos Malaysia.
Pos Malaysia’s acceptance of DRB-Hicom’s offer today comes seven days ahead of the initial deadline of Dec 23.
At market closing today, Pos Malaysia shares were up 3 sen to RM2.64, while DRB-Hicom was down 1 sen to RM1.20.
You must be logged in to post a comment.