Petronas Chemicals Group Bhd (PCG) has has entered into a heads of agreement (HoA) to divest 25 per cent of its interest in Petronas Chemicals Fertiliser Sabah Sdn Bhd (PCFS) to SMJ Sdn Bhd.
SMJ is a wholly owned Sabah state government company.
In a Bursa Malaysia filing, PCG said the divestment is part of its strategic effort to position itself as a preferred partner in shaping and delivering the aspiration of PCG and SMJ to sustain and grow the petrochemicals business in Sabah.
Completion of the divestment is expected to be in 2023, subject to conditions precedent in the agreement being met,” it said.
PCG holds 100 per cent interest in PCFS, a company located in Sipitang, Sabah with a production capacity of 1.9 million tonnes per annum of ammonia and urea.