Petronas has shared the equity divestment details with regard to its earlier announcement on the Share Purchase Agreement between the group with SMJ Sdn. Bhd. in relation to parting with 25% equity interest in Petronas Chemical Fertiliser Sabah for a total consideration of RM1.24 billion.
The group said upon completion of the agreement of the divestment, PCFS will continue to be a subsidiary of PCG.
SMJ Sdn. Bhd. was incorporated in August 2014 and is a wholly owned company of the Sabah State Government It is the sole entity nominated and fully authorised by the State to acquire 25% shareholding interest in PCFS and to enter into the Agreements.
The divestment came about as the State had expressed its interest to own equity in PCFS since PCG undertook the construction of an integrated ammonia and urea plant, PCG had considered the State as a potential strategic partner in PCFS. With the partnership, PCG has the ability to position itself as the preferred partner in shaping and delivering the aspiration of the State to have greater participation in petrochemical industry; and the opportunity to develop a robust working relationship with the State which could unlock areas of cooperation that could derive mutual benefits.
The consideration of the Divestment is RM1,246 million which is based on the net book value of plant, property, and equipment of PCFS as at Financial Year Ended (FYE) 31 December 2022. The consideration is payable on a deferred payment arrangement.
