W T K Holdings Bhd said that its wholly-owned subsidiary company, Kuching Plywood Bhd (KPB) had entered into a Share Sale Agreement (“SSA”) with TMC Importer & Exporter Sdn. Bhd (TMC) for the purpose of acquiring 100% equity interest in Sing Chew Cold Storage Sdn. Bhd( SCCS) represents 3.47 million shares for a total cash purchase consideration of RM20 million.
SCCS is principally engaged in the business of an importer, wholesaler, and retailer of frozen food. With more than 20 years in operations, SCCS has an established track record in the frozen food industry
KPB had expressed its interest to acquire the Shares in SCCS after the Liquidator of TMC put up an invitation for expression of interest to acquire the Shares in SCCS publicly by way of advertisement in the newspapers on 19th March 2022.
TMC agrees to sell to the KPB and KPB agrees to purchase from TMC the Shares on as is where is basis. Upon the completion of the Proposed Acquisition, SCCS will become the wholly-owned subsidiary of KPB.
Prior to the signing of the SSA by both parties, the Purchaser has deposited with the Vendor via the Liquidator’s Account an earnest deposit in the sum equivalent to 10% (ten per centum) or RM2 Million of the Purchase Consideration, the receipt of which the Vendor duly acknowledges.
The remaining balance of the Purchase Consideration in the sum of RM18 million shall be paid by the Purchaser by way of depositing a valid cheque of the above amount (“the Cheque”) with the Vendor’s solicitors or with the Liquidator’s Office within fourteen (14) days from the date of execution of the SSA by the Purchaser. It said that the proposed Acquisition represents an opportunity for the Group to diversify into the business of importer, wholesaler and retailer of frozen food and is expected to provide the Group with a long-term viable business with growth opportunity
