Greenyield set to buy 65% equity interest in GRHM for RM87.8mil

TheStar Mon, Mar 21, 2022 03:50pm - 2 years View Original


KUALA LUMPUR: Greenyield Bhd has proposed to acquire 65 per cent equity interest in Greenyield Rubber Holdings (M) Ltd (GRHM) for RM87.8 million in a related party transaction, "subject to adjustments as set out in the share sale agreement.”

The vendors are Greenyield Holdings Sdn Bhd, Premium Commodities Sdn Bhd, Tham Foo Keong, Tham Foo Choon, Tham Kin-On, and Foong Sai Cheong.

In a Bursa Malaysia filing today, investment holding company Greenyield Bhd, which operates in three segments - plantation, rubber, and household goods - said the proposed acquisition would be satisfied via RM3 million cash, issuance of up to 226.05 million shares in Greenyield Bhd at 29 sen per share amounting up to RM65.55 million, of which up to 18 million shares shall be issued at a later date valued at RM3 million.

It would also issue up to 66.40 million new irredeemable convertible preference shares (ICPS) in Greenyield Bhd at 29 sen per ICPS amounting up to RM19.26 million, of which up to 19.14 million ICPS shall be issued at a later date.

The Greenyield group said it obtained shareholders’ approval in 2019 to diversify its principal activities to include rubber plantations, which was expected to provide a stable source of recurring income following its acquisition of two companies in Kelantan.

The two companies were principally engaged in rubber planting and estate management and had about 800 hectares (ha), increasing the group's plantation landbank from 400 ha to 1,200 ha.

The revenue generated from the rubber plantation business amounted to about RM1.4 million and is expected to increase as the rubber trees mature, it said.

The new proposed acquisition augurs well with the group’s long-term strategy of expanding its plantation business and also represents an opportunity to enhance its source of recurring income, Greenyield Bhd said.

As of Dec 17, 2021, being the material date of valuation, GRHM and its subsidiaries have 15,313 ha plantation properties located in Papua New Guinea.

On completion of the proposed acquisition, the aggregate plantable area controlled by the Greenyield group is expected to increase from 1,200 ha to 16,399 ha. - Bernama

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