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Sunday, July 26, 2015

CCM to park all pharmaceutical assets under CCM Duopharma Biotech

Posted on 28 November 2014 - 05:40am
PETALING JAYA: Chemical Company of Malaysia Bhd (CCMB) is selling its entire equity interest in six of its subsidiaries to CCM Duopharma Biotech Bhd (CCMD) and Duopharma (M) Sdn Bhd for RM133.325 million.
The six subsidiaries are CCM Pharmaceuticals Sdn Bhd (CCMP), CCM Pharma Sdn Bhd, Innovax Sdn Bhd, Upha Pharmaceutical Manufacturing (M) Sdn Bhd, CCM International (Philippines) Inc (CCM Philippines) and CCM Pharmaceuticals (S) Pte Ltd (CCM Singapore).
In a filing with Bursa Malaysia yesterday, CCMB said it had entered into a conditional share sale agreement (SSA) with CCMD for the proposed disposal of 100% equity interest in CCMP and its subsidiaries as well as 100% equity interest in Innovax, and settlement of outstanding inter-company advances owed by CCMP and/or its subsidiaries and Innovax to CCMB and/or its subsidiaries (CCMB Group) as at Sept 30, 2014.
CCMB also entered into a conditional SSA with Duopharma for the proposed disposal of 100% equity interest in CCM Pharma and Upha, and settlement of outstanding inter-company advances owed by both subsidiaries to CCMB Group as at Sept 30, 2014.
CCMD will also acquire 100% equity interest in CCM Singapore and CCM Philippines from CCM International Sdn Bhd and CCM Investments Ltd respectively.
"The proposed disposals will unlock the value of CCMB's investments in the identified companies. However, CCMB will continue to participate in and benefit from the growth, potential earnings and any capacity expansion of the identified companies through its shareholding in CCMD," it said.
CCMB said the proposed disposals are intended to rationalise the pharmaceutical assets within the CCMB Group by housing them under its pharmaceutical arm, CCMD.
"As CCMD is licenced to produce pharmaceutical products to the Health Ministry, the combined production facilities, pursuant to the proposed disposals, would allow CCMD to bid for larger contracts announced by the ministry.
"The rationalisation is expected to improve the utilisation rate of the combined production facilities by channelling capacity of any production facility within CCMD to any under-utilised production facilities," it added.
CCMB plans to use RM132.525 million of the proceeds from the disposals to reinvest in its subsidiaries while the remaining RM800,000 is for estimated expenses.
The proposed disposals are subject to approval by shareholders of CCMB, CCMD, Duopharma, CCM International and CCM Investments at separate EGMs to be convened.
Maybank Investment Bank Bhd has been appointed as principal adviser to the company for the proposed disposals.

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