SCGM 7247 SCGM BHD gets nod to RM544.38mil sale, RM426mil dividend distribution for shareholders

 SCGM 7247 SCGM BHD gets nod to RM544.38mil sale, RM426mil dividend distribution for shareholders

LSSPI, a wholly-owned subsidiary of SCGM, is being sold to Japanese companies Mitsui & Co Ltd and FP Corporation.

KUALA LUMPUR: Food packaging manufacturer SCGM Bhd shareholders have approved the disposal of 100 per cent stake in Lee Soon Seng Plastic Industries Sdn Bhd (LSSPI) for RM544.38 million.

LSSPI, a wholly-owned subsidiary of SCGM, is being sold to Japanese companies Mitsui & Co Ltd and FP Corporation.

SCGM said in a statement Mitsui would acquire a 60 per cent stake representing 63.88 million LSSPI shares for a cash consideration of RM326.63 million, while FPCO the remaining 40 per cent comprising 42.59 million LSSPI shares for RM217.75 million.

"Separately, LSSPI also entered into a conditional sale and purchase agreement with SCGM's wholly-owned subsidiary Habipack Sdn Bhd for the transfer of three contiguous parcels of land with factory buildings and other ancillary buildings located at Mukim Senai, Kulai, Johor for a total cash consideration of RM18.80 million," it said in a statement.

Of the total RM544.38 million disposal proceed, RM425.56 million is earmarked for distribution to entitled SCGM shareholders while RM18.80 million will be utilised for transfer of properties immediately upon completion of the disposal.

A total of RM84.02 million was allocated for acquisition of new business/assets to be identified or for working capital within 24 months and the remaining RM16 million was to defray estimated expenses for the exercises, it added.

As for the amount earmarked for distribution to shareholders, SCGM said  the capital reduction and repayment exercise would cancel RM69.32 million of its share capital, reducing it from RM132.44 million to RM63.12 million.

This will be distributed to entitled shareholders by way of cash distribution of 36 sen per SCGM share on the entitlement date which will be determined by the board later.

"The entitlement date for capital reduction and repayment will be determined upon obtaining the order of the High Court of Malaya confirming the capital reduction and repayment under Section 116 of the Companies Act 2016.

"The board would also declare and pay part of the disposal consideration as a special cash dividend to entitled shareholders on an entitlement date to be determined by the board later.

"The amount proposed to be distributed as a special cash dividend to entitled shareholders will be RM1.85 per SCGM share," said SGCM.

Barring unforeseen circumstances, the company said the capital reduction and repayment exercise as well as special dividend are expected to be completed by the fourth quarter of this year.

https://www.nst.com.my/business/2022/08/824420/scgm-gets-nod-rm54438mil-sale-rm426mil-dividend-distribution-shareholders