KLW Holdings to buy out KLW Resources at RM25m
KLW Holdings announced late Monday, an agreement with Koperasi Permodalan Felda Malaysia Bhd (KPF) to acquire over 13 million Class A shares in the share capital of KLW Resources Sdn Bhd for RM25 million (S$8.21 million).
The Class A shares represent 30 per cent of the issued capital of KLW Resources, which are legally and beneficially owned by KPF as at Dec 29, the date of the agreement.
The balance 70 per cent of the issued share capital of KLW Resources comprises over 30.3 million Class B shares that are legally and beneficially owned by KLW Holdings.
KLW Holdings is funding the proposed acquisition through its internal resources and also from the balance proceeds of S$1.62 million raised from a rights cum warrants issue undertaken by the company in 2014.
On completing the acquisition, KLW Holdings will be the legal and beneficial owner of 100 per cent of the issued share capital of KLW Resources, comprising all the Class A and Class B shares of KLW Resources.
This deal called on KLW Resources to make payment of outstanding coupon payment due and payable to KPF of not more than RM1.36 million for the period from Jan 1, 2017 until the date of the completion of KLW Holdings' acquisition to KPF.
The deal with KPF also called upon KLW Holdings to waive its right to claim the acquisition sum amounting to RM2 million under a share sale agreement entered by the two parties on Aug 20, 2010.
KLW Holdings is also required to deliver a written confirmation to KPF that KLW Resources will not be listed on the Kuala Lumpur stock exchange or other reputable bourses within 12 months from Dec 29.
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