KUALA LUMPUR: Chemical Company of Malaysia Bhd has proposed to acquire the remaining 20 per cent equity interest in CCM Chemicals Sdn Bhd for RM40 million cash.
In a filing with Bursa Malaysia today, CCM said it will be acquiring a 10 per cent stake each from Lanjut Setia Sdn Bhd and Permodalan Nasional Bhd (PNB) respectively.
Upon the completion of the proposed acquisitions, CCM Chemicals will effectively be its wholly-owned subsidiary.
Currently, CCM Chemicals is 80 per cent-owned by CCM Usaha Kimia (M) Sdn Bhd, which is CCM’s wholly-owned subsidiary.
CCM Chemicals manufactures and markets chlor-alkali and coagulant products and markets industrial and specialty chemicals.
“CCM intends to undertake the proposed acquisitions to further consolidate its existing chemicals division and strengthen its position in the chemicals industry,” it said.
CCM added that the proposed acquisitions are part of its growth strategy to pare down its borrowings and improve its gearing.