Honam to buy 73pc of Titan Chem
KUALA LUMPUR: South Korea's Honam Petrochemical Corp has launched a takeover of TITAN CHEMICALS CORP. BHD []., to acquire remaining 72.32% stake or 1.249 billion shares for RM2.93b or RM2.35 a share.
Titan said on Friday, July 16 that its major shareholders Union Harvard Investments S.R.L, CGDC Investments Corporation, Permodalan Nasional Bhd, and AmanahRaya Trustees Bhd had signed agreements to sell their collective stakes to Honam.
Honam, which is the flagship company of the Lotte Group's pertochemical business, said that in accordance with the Malaysian Code on Takeovers and Mergers, 1998, it had to make an unconditional take-over offer to the remaining shareholders.
"Through the proposed acquisition, Honam expects to strengthen overseas operations by securing international production bases in high-growth markets and in areas with access to competitive feedstock and expand its presence in Southeast Asia, China, the Middle-east and the Commonwealth of Independent States as one of the most competitive petrochemical players in Asia," it said.
It said the proposed acquisition would diversify its business model and sustain growth in forthcoming years.
Written by Joseph Chin
The Edge Malaysia
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