Borneo Oil Bhd announced that it entered into a Deed of Variation (“DOV”) to reduce the proposed acquisition of equity interest in Makin Teguh Sdn Bhd ( MTSB) to 13.76% representing 17,350,299 ordinary shares and the purchase consideration will be revised to RM45,000,000.00. All other provisions in the SSA shall remain unchanged and apply to the DOV.
Borneo Oil had 17 and 18 May entered into share sale agreement for the acquisition of 28,361,208 ordinary shares representing 22.49% of the existing equity interest in Makin Teguh Sdn Bhd from MT Resources LTD for RM73.558 million.
According to Borneo Oil, the acquisition presents an opportunity for the group to move downstream its quarrying resources to further boost its profit.
“There is synergy between the BOB Group’s (Borneo Oil) existing limestone quarrying business operations and MTSB’s clinker and cement plant,” said the group.
MTSB owns an integrated clinker and cement plant (ILPP) in Lahad Datu, Sabah, which is situated adjacent to the limestone quarry land owned by Borneo Oil.
