Palm Oil Plantation to Be Ayer Molek's Core Business

THE Ayer Molek Rubber Co Bhd, which has been without a core business for some time, will be transfer its listing status to a new company (newco) in a RM300 million reverse take-over. Under the deal, the newco will own and operate oil palm plantations as its core business. Ayer Molek plans to buy entire stakes in the Yuwang group, which comprises four companies, namely Yuwang Plantation Sdn Bhd, Seraya Asia Sdn Bhd, Ladang Ulu Tingkayu Sdn Bhd and Consoway Sdn Bhd. It will pay by issuing 300 million new Newco shares of RM1 each. The controlling shareholders of newco will be See Hong Chen & Sons Sdn Bhd, Ng Kong Ghee & Brothers Sdn Bhd, Chee Chi Vun & Brothers Sdn Bhd, Tan Soon Chai & Sons Sdn Bhd, Web Tenaga Sdn Bhd, Brantian Maju Sdn Bhd, Lim Teng Hua & Brothers Sdn Bhd and others. They are now owners of the Yuwang group. They will end up holding 97 per cent of newco. Then, the investors will sell some of their shares to reduce their collective stake to 75 per cent. Besides the proposed acquisition, Ayer Molek also proposed to exchange 1.8 million Ayer Molek shares held by existing its shareholders with 1.8 million newco shares. The share exchange would be done after the acquisition. “Since 2006, Ayer Molek became dormant without any core business. Upon completion of the proposed acquisition of Yuwang group, the proposed shares exchange will take place, resulting in the existing shareholders of Ayer Molek becoming the shareholders of newco. “As the proposed acquisition of Yuwang group would enable newco to establish oil palm plantation as its core business, this will benefit all the existing shareholders of Ayer Molek who have become the shareholders of newco,” said Ayer Molek in its filing yesterday. The proposal will need approval from the authorities, regulators as well as shareholders. Source : Business Times

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