Borneo Oil Bhd (BOB) announced the acquisition of 22.49% Equity Interest in Makin Teguh Sdn Bhd (MTSB) from MT 23 Resources Ltd for RM73.558 million.
The Purchase Consideration will be satisfied by way of treasury shares transfer and cash from internally generated funds.
It said that the rationale of the acquisition is that it presents an opportunity for the BOB Group to move downstream its quarrying resources to boost the profits further. There is synergy between the BOB Group’s existing limestone quarrying business operations and MTSB’s clinker and cement plant.
It said that the integrated clinker and cement plant (“ILPP”) is situated adjacent to the limestone quarry lands owned by the BOB Group of companies. MTB has entered into a long-term supply contract for limestone with BOB’s subsidiaries on the current stockpile and overburdened waste from existing quarrying operations to supplement the ILPP’s initial limestone feedstock requirements.
