Fraser & Neave Holdings’ (F&N) direct wholly-owned subsidiary Awana Citra Sdn Bhd has proposed to acquire the Sri Nona companies for a total of RM60 million ($19.7 million) to be paid in cash.
Awana, on Dec 13, entered into a conditional share sale agreement with Siew Yun Sing and Tong Saw Man in relation to the proposed acquisition.
The percentage ratio applicable to the acquisition is 2.37%. As it is under 5% under Bursa Malaysia Securities’ main market listing requirements, F&N is not required to announce the acquisition to Bursa Malaysia Securities.
Under the agreement, Awana will acquire the entire issued share capital from Siew and Tong in all the Sri Nona Companies – namely Sri Nona Food Industries, Sri Nona Industries and Lee Shun Hing Sauce Industries.
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Of the RM60 million, RM57 million will be paid to Siew and Tong upon the completion of the agreement, which is 30 days from the fulfilment of all conditions mentioned in the agreement.
The balance of RM3 million will be paid to Siew and Tong’s solicitors.
The purchase consideration was arrived at on a willing-buyer willing-seller basis.
Based on the unaudited financial statements of the Sri Nona Companies for the period ended June 30, the net asset value attributable to the sale shares was approximately RM21.4 million.
The proposed acquisition will be paid using the company’s internal funds and is expected to be completed in 1Q2021.
Shares in F&N closed flat at $1.41 on SGX and RM32.50, up 1.75% on Bursa Malaysia on Dec 15.
