In a filing on Bursa Malaysia, CMS said SISB has entered into a binding offer with OMS for the pproposed disposals of its entire 25 per cent equity interests in OM Sarawak and OM Samalaju for a total cash consideration of US$120 million (RM4.34 per dollar). – File photo
KUCHING (May 5): Cahya Mata Sarawak Bhd (CMS), via its wholly-owned subsidiary Samalaju Industries Sdn Bhd (SISB), announced that it has proposed to disposed its entire 25 per cent stake in OM Materials (Sarawak) Sdn Bhd (OMS) and OM Materials (Samalaju) Sdn Bhd (OM Samalaju) to OM Materials (S) Pte Ltd (OMS), a wholly owned company by OM Holdings Ltd (OM Holdings).
In a filing on Bursa Malaysia, CMS said SISB has entered into a binding offer with OMS for the proposed disposals of its entire 25 per cent equity interests in OM Sarawak and OM Samalaju for a total cash consideration of US$120 million (RM4.34 per dollar).
Subject to the definitive agreement to be entered into, SISB agrees to sell and OMS agrees to purchase the sale shares; 165.6 million ordinary shares in OM Sarawak, representing 25 per cent of the issued share capital of OM Sarawak and 43.7 million ICPS in OM Sarawak, representing 25 per cent of the ICPS of OM Sarawak in issue, and 32.1 million ordinary shares in OM Samalaju, representing 25 per cent of the issued share capital of OM Samalaju.
In a statement posted on Bursa Malaysia and ASX, OM Holdings executive chairman and chief executive officer Low Ngee Tong remarked: “We appreciate the past contributions by our partner, CMS, to the Sarawak project. Together with our recent secondary listing in Bursa Malaysia, this transaction marks a key milestone in our journey and complements the wider OM Holdings strategy of growing our Sarawak smelter and becoming the leading supplier of ferroalloys globally – building significant value for all shareholders.”
Upon successful completion of the agreement, OM Sarawak and OM Samalaju will be 100 per cent owned subsidiaries of OM Holdings.
OMS and SISB have agreed to enter the proposed transaction on or before May 30, 2022 following the approval of the board of directors of OMS, OM Holdings, SISB, and CMS.
OMS was incorporated in Singapore as a private company limited by shares under the Singapore Companies Act. It is principally involved in investment holding and trading of metals and ferroalloy products. The immediate holding company of OMS is OM Resources (HK) Ltd and its ultimate holding company is OM Holdings Ltd, a company listed on the Australian Securities Exchange and Bursa Malaysia Securities Bhd.
OM Sarawak owns and operates a ferrosilicon and manganese alloy smelter in Sarawak with an annual production capacity of approximately 200,000 to 210,000 tonnes of ferrosilicon, and approximately 250,000 to 300,000 of manganese alloy.
The plant also consists of a sinter plant that has a design capacity to produce 250,000 tonnes of sinter ore per annum.
OM Samalaju develops and manages selected capital projects for OM Sarawak.