Cahaya Mata disposes UBG shares
Filed Under (Business News) by Webmaster on 11-01-2010
Tagged Under : Cahaya Mata, UBG
Cahya Mata Sarawak Bhd’s (CMS) wholly-owned subsidiary Concordance Holdings Sdn Bhd and 51%-owned PPES Works (Sarawak) Sdn Bhd will sell their combined 37.21% equity interest in UBG Bhd to PetroSaudi International Ltd for RM465.53mil.
CMS told Bursa Malaysia yesterday that the proceeds would be used to tap investment opportunities which could potentially provide higher yield and returns and/or enhance shareholders’ value.
“In comparison, CMS’ current investment in UBG is only at an associate level; thus the cashflow contribution from UBG is limited to dividend payments.
“Furthermore, capital appreciation has been muted, given the overall economic and market sentiments, coupled with the low trading liquidity of UBG shares,” it added.
The CMS group intends to take advantage of emerging business opportunities such as projects in the Sarawak Corridor of Renewable Energy region and a world-class aluminium smelter in Samalaju Industrial Park, Sarawak.
On completion of the proposed disposal, CMS’ other core businesses would include manufacture of cement, clinker, wires and concrete products, civil engineering, road construction and maintenance, quarry operations, production and sale of premix, financial services and property development.
The board is still assessing and evaluating plans on the optimal utilisation of the proceeds, which would provide maximum benefits to the CMS group and its shareholders.
The disposal is expected to be completed by the first quarter of this year.
