CCK enters into binding term sheet with Creador


PETALING LAYA: CCK Consolidated Holdings Bhd (CCK) has signed an agreement with Astrantia Sdn Bhd, a special purpose vehicle company of Creador Sdn Bhd, where in Astrantia will make a RM170.3mil investment to acquire a 40% stake in CCK's subsidiary, PT Adilmart.

In a filing with Bursa Malaysia, CCK said this investment will facilitate the expansion of Adilmart, which specialises in the production of frozen foods, including sausages and other processed meat products.

Under the terms of the agreement, Astrantia's acquisition of a stake in Adilmart will involve both the purchase of existing shares from CCK and the subscription to new shares, spread across three tranches.

The first tranche entails acquiring about 27.2% equity interest in Adilmart for a total consideration of RM95.3mil.

Meanwhile, the second tranche, which serves as the initial shares subscription, is aimed at funding the business's growth and involves an additional investment of RM60mil.

The final tranche, referred to as the subsequent shares subscription, is scheduled for a later date and is intended to further finance the business's growth with RM15mil.

However, prior to the completion of the proposed investment, the CCK and its wholly-owned subsidiary CCK Fresh Mart Sdn Bhd, which hold 96.25% and 3.75% equity interest in Adilmart, respectively, shall ensure that Adilmart conducts a restructuring exercise.

This exercise involves carving out Adilmart's out-of-scope companies, namely its investments in PT Central Coldstorage Khatulistiwa and PT Bonanza Pratama Abadi.

Upon the completion of the proposed investment, Adilmart will transition into a 60% subsidiary of CCK.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

CCK Consolidated , CCK , SPV , Creador

   

Next In Business News

Ringgit maintains stronger footing at the close
Gagasan Nadi Cergas to acquire student hostel concession for RM185mil
F&N ends FY24 with higher net profit of RM542.77mil
Bursa Malaysia reverses early losses to end higher ahead of MPC outcome
Proton October sales up 13.6%, YTD hits 125,557 units
TCS secures RM86.38mil construction contract from Sime Darby Property
Oil trades in tight range ahead of US election
China shares jump, dollar skittish with all eyes on US Election Day
Bank Negara unveils key principles to harness Islamic finance for economic growth
Aneka Jaringan unit secures RM39mil contract for KL project

Others Also Read