PETALING JAYA: SCGM Bhd is proposing to acquire Eramas Global Group Sdn Bhd as part of its overall regularisation plan to regularise its condition as a cash company.
In a filing with Bursa Malaysia, SCGM said it had entered into a heads of agreement to acquire Eramas from Chin Kok Tian, Yan Hua Lan, Tan Ah Tek, Gan Chuan Lee, Tey Chee Shin, Tan Tai Chong and Lau Sie Khian at a price to be determined later.
Eramas is involved in the sale and distribution of coconut related products, palm oil and fat products and dairy products to local and overseas markets, as well as manufacturing of coconut and palm oil related products.
“The proposed acquisition is intended to form part of the company’s overall regularisation plan to regularise its condition as a cash company in accordance with Paragraph 8.03(5) of the Listing Requirements.
“The company proposes to satisfy the purchase consideration by way of cash and/ or via the allotment and issuance of new ordinary shares in the company at the issue price of 61.5 sen per share,” it said.
The proposed acquisition is deemed a related party transaction because Chin, Yan and Ah Tek collectively hold a 24.15% stake in SCGM.
SCGM became a cash company in September 2022, following its disposal of its core business, Lee Soon Seng Plastic Industries Sdn Bhd to Mitsui and Co Ltd and FP Corp for RM556.99mil.