Financials_MPA

Cahya Mata Sarawak Berhad Increases Stake In MPAS Project

Kuching (Sarawak), Monday, 14 January 2019 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce that its wholly-owned subsidiary company, Samalaju Industries Sdn Bhd, subscribed for 64,242,800 new ordinary shares in Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) for a total cash consideration of RM64.24 million.

Pursuant to this subscription, the shareholders and their respective shareholdings in MPAS are as follows:

Name of Shareholder Before Subscription After Subscription
No. of Shares Held % No. of Shares Held %
Samalaju Industries Sdn Bhd 127,542,400 49.94 191,785,200 60.00
Malaysian Phosphate Venture Sdn Bhd 86,856,800 34.01 86,856,800 27.17
Arif Enigma Sdn Bhd 41,000,000 16.05 41,000,000 12.83
Total 255,399,200 100.00 319,642,000 100.00

MPAS was set up as a joint venture company to construct and operate an integrated phosphate complex in Samalaju Industrial Park, Sarawak. The construction work of the plant is currently on-going and the first phase, comprising three integrated plants, is targeted to be complete by end of 2020. The plant will produce Yellow Phosphorous, Technical Grade Phosphoric Acid and Food Grade Phosphoric Acid, with an annual production capacity of 48,000 metric tons (MT), 75,000 MT and 60,000 MT respectively.

Commenting on the subscription, CMSB’s Group Chief Executive Officer – Corporate, Dato Isaac Lugun, said: “This is a strategic move to increase our footprint in the Sarawak Corridor of Renewable Energy (SCORE). The increase in our stake in MPAS is also in line with our growth strategy for our strategic investments to drive the next wave of growth for CMS Group. In particular, the aim of this growth strategy is for our traditional core businesses and our strategic investments to equally contribute to double the Group’s earnings in the next five years.”

“MPAS’ first phase of production is expected to commence by end of 2020 and this project is expected to contribute significantly towards our Group’s earnings in the future.” added Dato Isaac Lugun.