RM1bil in dividends from NBPOL stake sale. (The Star) KUALA LUMPUR: Kulim (M) Bhd will pay RM1bil in dividends from the proceeds arising from the sale of its 48.97% stake in New Britain Palm Oil Ltd (NBPOL) to Sime Darby Bhd. This works out to 78 sen per Kulim share. Kulim said the dividends were expected to be paid on a staggered basis over a period of two years to ensure a minimum stream of stable dividends payment to shareholders, and to encourage longer term investment in Kulim shares. Kulim shares closed nine sen higher at RM3.39 yesterday. ----------------- Profit.at.Bursa ----------------- In a filing with Bursa Malaysia, Kulim said it expected to gain RM1.56bil from the sale of its 48.97% stake NBPOL. Kulim said it was selling its stake at £7.15 (RM37.47) a share to Sime as there was no superior offer from other parties for its stake. “For illustrative purposes only, based on the latest audited consolidated financial statements of Kulim group as of Dec 31, 2013 and on the assumption that the proposed disposal had been effected on that date, Kulim expects to realise a gain on disposal of approximately RM1.56bil to Kulim group,” it said. Sime had launched an offer on Oct 9 to buy all of the shares in NBPOL – which has plantations in Papua New Guinea - for £1.073bil in a move to expand its plantation business. Kulim said it had received the formal offer document from Sime and in the absence of a superior offer, the board has agreed to present the proposed disposal to the shareholders of Kulim at an EGM to be convened for their consideration and approval. On Oct 25, 1996, Kulim and its subsidiaries made the initial investment in NBPOL by buying 96 million NBPOL shares for RM282.71mil. Since its investment in 1996, Kulim group had sold 22.517 million NBPOL shares with a cumulative gain of about RM113.35mil on disposal. The original cost of investment of the remaining 73.482 million NBPOL shares held was about RM216.39mil. “The proposed disposal provides a timely opportunity for Kulim to dispose of its large shareholding in NBPOL and realise its investment in NBPOL at an attractive premium above the historical trading prices of NBPOL and at the valuation multiples. “Moreover, the proposed disposal is also aligned to the offer, whereby Sime has received a letter dated Oct 1, 2014 from the Prime Minister of the Independent State of PNG acknowledging that Sime is keen to make a general offer for NBPOL and reiterating that Sime’s proposed acquisition of shareholding in NBPOL will not be contrary to PNG’s national interest in relation to Rule 27A of the PNG Code,” it added. Apart from the RM1bil earmarked for dividends from the gross proceeds of £525.40mil (about RM2.75bil) arising from the proposed disposal, Kulim has also allocated RM600mil for repayment of bank borrowings, RM850mil for investment or acquisitions of viable asset and business while the balance of RM300mil will be utilised for general working capital. Kulim said the proposed disposal would reduce the group’s gearing from about 0.40 times to about 0.21 times and strengthen the working capital of Kulim Group to support its core plantation business and new ventures locally and abroad. Kulim said the proposed disposal was also in line with its strategy of constantly evaluating its portfolio of investments and where possible seeking opportunities to unlock the value of its investments for the benefit of the shareholders of Kulim. “The proposed disposal is also in line with Kulim’s strategy of constantly evaluating its portfolio of investments and where possible seeking opportunities to unlock the value of its investments for the benefit of the shareholders of Kulim,” it said. ----------------- Profit.at.Bursa ----------------- | #saham | #kulim |
Posted on: Fri, 24 Oct 2014 12:31:00 +0000