Batu Kawan Berhad announced that it has received a non-binding letter of intent from TMK Chemical Bhd to acquire 100% equity interest in Chemical Company of Malaysia Berhad, including the full economic interest in CCM’s subsidiaries and associated companies.
The proposed acquisition values CCM Group at an indicative purchase consideration of RM920 million on a cash-free, debt-free basis.
The group said the indicative offer excludes certain assets comprising an associate company of CCM and two parcels of land held by CCM.
The proposed consideration will be satisfied through a combination of cash and new ordinary shares in TMK. The consideration shares will be issued at RM1.9098 each, based on the five-day volume weighted average market price of TMK shares traded on Bursa Malaysia Securities Berhad as at May 31, 2026.
Upon completion of the proposed transaction, the consideration shares are expected to result in BKB holding at least a 20% equity interest in the enlarged share capital of TMK.
BKB’s Board of Directors, excluding interested directors Tan Sri Dato’ Seri Lee Oi Hian, Dato’ Lee Hau Hian and Lee Yuan Zhang, has deliberated on the offer and agreed in principle to accept the indicative proposal.
The acceptance remains subject to several conditions, including advice from an independent adviser, completion of customary due diligence on CCM Group and the execution of a definitive sale and purchase agreement between BKB and TMK.
BKB noted that if the proposed transaction proceeds, it will constitute a related party transaction and will require approval from the company’s non-interested shareholders at an extraordinary general meeting.
The company clarified that the acceptance-in-principle does not create legally binding obligations between BKB and TMK, except for provisions relating to exclusivity and confidentiality.
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