TDM Bhd has accepted an offer from Ikhasas CPO Sdn Bhd to acquire two loss-making Indonesian subsidiaries for RM115 million.
The two loss-making subsidiaries, namely PT Rafi Kamajaya Abadi (RKA) and PT Sawit Rezeki Abadi (SRA), have been unprofitable for the past three financial years ended Dec 31, 2018 (FY18), FY19 and FY20, according to TDM, and are not expected to be profitable in the near term.
On March 21, TDM accepted the offer from Ikhasas, which is involved in the palm oil business and trading and exporting of palm products, to acquire 93.75% and 95% of RKA and SRA respectively.
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Ikhasas will also acquire 6.25% and 5% of RKA and SRA respectively from TDM’s minority shareholder — the legal heirs of Haji Rahman. Andri as the appointed representative of the legal heirs of Haji Rahman, had on March, provided an undertaking to TDM to, amongst others, join TDM in the proposed disposal.
According to TDM, Ikhasas shall pay the group a sum of RM2.3 million, representing 2% of the disposal consideration, within seven business days from the date of receipt of TDM’s acceptance of the offer.
The exercise provides an opportunity for TDM and its subsidiary to exit the Indonesian operations and focus its resources in its Malaysian operation, the palm oil company announced in a bourse filing.