Samalaju Industries Sdn. Bhd. a wholly-owned subsidiary of Cahya Mata Sarawak has agreed to sell its entire 25% stake in OM Materials Sarawak and OM Materials Samalaju to OM Materials (S) Pte. Ltd. forUS109.23 million or RM479.37 million after having excluded the estimated Shareholder’s Loans of USD10.77 million or approximately RM 47.25 million.
With a fair equity value of USD107.40 million or approximately RM471.32 million, the disposal consideration price is appraised by Asia Equity Research Sdn Bhd. It is evaluated through the adoption of a price-to-book multiple approaches, price-to-earnings multiple approaches, and enterprise value to earnings before interest, taxes, depreciation, and amortization.
The evaluation concluded that the trailing PBR of 1.61 times is within the range of PBRs of the comparable companies listed on Bursa Securities selected by AER, which is between 0.6 times and 2.4 times. The trailing PER of 5.3 times is within the range of the comparable companies which is between 3.9 times and 9.9 times.
