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Sunday, February 21, 2016

Indonesian tycoon close to owning 20% stake in CAB Cakaran

KUALA LUMPUR (Feb 19): Indonesian tycoon Anthoni Salim is believed to have upped its stake in Penang-based poultry company CAB Cakaran Corp Bhd, after buying an additional 3.266% or 5 million shares for RM10.65 million via off-market trading over two days, said a source close to the situation.

According to Bloomberg data, CAB Cakaran sold 5 million shares in two block deals. One block of 3 million shares was executed yesterday, transacted at a price of RM2.13 apiece.

Another block of 2 million shares was traded today at noon, at the same price.

The source told that the two blocks of shares were sold to Anthoni, who is the chairman of the Salim Group controlling some 45% of it. According to Forbes, the Salim family is Indonesia's third-richest family in 2015 with a net worth of US$5.4 billion.

At RM2.13 per share, the transacted price is a 17.7% premium to the closing price of RM1.81 per share today.

On Jan 20, Anthoni emerged as a substantial shareholder in CAB Cakaran via a 6.69% off-market transaction. To date, Anthoni holds 8.5549% in the chicken breeder through Plant Wealth Holdings Ltd. Plant Wealth is controlled by KMP Investments Pte Ltd, which in turn is 67% owned by Anthoni.

The latest share acquisition would bring Anthoni's stake in CAB Cakaran to 11.81%.

This excludes the agreement Plant Wealth entered into with CAB Cakaran on Jan 18 for a proposed private placement of a 9.1% stake or 15.06 million new shares at an issue price of RM2.07 per placement share or RM31.17 million.

The proposed private placement is expected to be completed in the second quarter of 2016, pending the approval of the shareholders in an extraordinary general meeting.

Once the private placement is completed, Anthoni will effectively own some 20% stake in the group.

The source said Salim Group will have a board seat at CAB Cakaran after the private placement, which will give it a bigger say in the management of CAB Cakaran.

On Dec 7, 2015, The Edge Financial Daily reported that Salim Group was eyeing as much as 20% equity in CAB Cakaran.

On the same day, CAB Cakaran announced its joint-venture agreement (JVA) with Salim's special purpose vehicle (SPV) in Indonesia for the purpose of establishing a fully integrated poultry business in Indonesia.

Under the JVA, the SPV will set up and hold a 90% stake in the new joint-venture company and CAB Cakaran will hold the balance 10%. However, CAB Cakaran will have the option to increase its shareholding up to 30% in the next three years after the initial set-up, depending on its financial condition.

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