The proposed acquisition by CCK Consolidated Holdings Bhd to acquire the entire equity interest Of PT Bonanza Pratama Abadi For RM33.74 million is fair and reasonable and not detrimental to the interests of the non-interested shareholders.
In an independent advice letter from Mercury Securities to its non-interested shareholders of CCK, it said that it recommends the non-interested shareholders of the Company vote in favour of the resolution pertaining to the Proposed Acquisition to be tabled at the Company’s forthcoming EGM.
It said that the proposed acquisition is expected to contribute positively to the earnings and EPS of CCK in view of PT Bonanza’s historical financial performance as well as the potential synergistic benefits of the Proposed Acquisition to be realised.
CCK had announced on 14th April 2022 that through its wholly-owned subsidiary Pt Adilmart that it proposed to acquire the entire equity interest Of PT Bonanza Pratama Abadi For RM33.74 million.
In a filing with Bursa Malaysia on April 14, the group said its wholly-owned subsidiary PT Adilmart has entered into a conditional sale share agreement with Mitsumoto Corp Ltd, Seven Star Enterprise Sdn Bhd, Harvest Bonanza Sdn Bhd, and Miradewi Rosadi for the proposed acquisition.
PT Bonanza is principally engaged in processing and freezing shrimp for local and export sales including principal products such as frozen raw shrimp, frozen cooked shrimp and frozen nobashi ebi shrimp.
“The proposed acquisition will be synergistic to CCK’s existing seafood business as well as the business of poultry processing and manufacturing of downstream products such as sausages, patties and meatballs, and as such is expected to complement the CCK Group’s existing activities.
