On behalf of the Board of Directors of SCGM (“Board”), Hong Leong Investment Bank Berhad (“HLIB”) wishes to announce that SCGM had on 9 May 2022 entered into a conditional share sale agreement (“SSA”) with Mitsui & Co., Ltd (“Mitsui”) and FP Corporation (“FPCO”) (collectively, the “Purchasers”) for the proposed disposal of 100% equity interest held by SCGM in Lee Soon Seng Plastic Industries Sdn Bhd, a wholly-owned subsidiary of SCGM for a total cash consideration of approximately RM544.38 million (“Disposal Consideration”).  

The Proposed Disposal is deemed as a major disposal pursuant to Paragraph 10.11A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) (“Listing Requirements”).

Upon the completion of the Proposed Disposal, the Board proposes to distribute part of the Disposal Consideration to all entitled shareholders of SCGM, by way of:

(i) proposed capital reduction and repayment exercise under either Section 116 or 117 of the Companies Act 2016 (“Proposed Capital Reduction and Repayment”) and the approach will be determined later; and

(ii) proposed special dividend.

Kindly refer to the attached document for further details on the Proposals.

This announcement is dated 9 May 2022.