KUB has proposed 86% equity interest in Central Cables Berhad (CCS) from Jag Capital Holdings for RM119.42 million which the group aims to fund via the issuance of new ordinary shares.
KUB has appointed Affin Hwang Investment Bank Berhad to act as the independent adviser of the Company for the Proposed Acquisition.
The rationale behind the acquisition is to diversify the operations carried on by the company and its subsidiaries to include the manufacturing and supply of power cables and wires. Upon completion, KUB’s shareholding in CCB will increase from
nil to approximately 86.65%.
KUB will also extend a mandatory general offer to acquire all the remaining CCB Shares not already owned by KUB of up to 7,075,368 CCB Shares, representing approximately 13.35% equity interest in CCB for an offer consideration of RM2.60037 per CCB Offer Share to be satisfied either wholly in cash or via the issuance of new ordinary shares in KUB at an issue price of RM0.60 per KUB Share.
