Kuching (Sarawak), Thursday, 26 March 2015 – Cahya Mata Sarawak Berhad (CMSB) (2852), the State’s leading infrastructure facilitator, is pleased to announce that its wholly-owned subsidiary, Samalaju Industries Sdn Bhd (SISB), has entered into a Share Sale Agreement with OM Materials (S) Pte. Ltd. (OMS) – a wholly-owned subsidiary of OM Holdings Ltd (OMH) – for the purchase of an additional 5% equity interest in the Ferrosilicon and Manganese alloys smelting project in Samalaju Industrial Park (SIP).
Under the terms of the Share Sale Agreement, the consideration payable by SISB to OMS for this transfer is USD18.45 million. The transfer is anticipated for completion, barring any unforeseen circumstances, by the end of March, 2015. Upon its successful completion, SISB’s effective interest in the Sarawak Project will be 25% and OMS’s effective interest will be 75%.
In response to the Share Sale Agreement, Dato’ Richard Curtis, Group Managing Director, Cahya Mata Sarawak Berhad, said: “The purchase of additional equity interest reflects our special focus in businesses that are part of the Sarawak Corridor of Renewable Energy (SCORE) initiative, and our confidence in this smelting project. OMS’s first phase of production commenced in September 2014, and going forward this project is expected to contribute
significantly towards our Group’s earnings.”
This comes four weeks after CMSB posted record profits, with a year-on-year pre-tax profit up 16% to RM341 million for the financial year ended 31 December 2014 (FY2014). The Group also reported total revenue of RM1.67 billion for FY2014, an 18% increase from the previous year’s (FY2013) revenue of RM1.42 billion.