KLK proposes to sell Crabtree & Evelyn

PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) has proposed to dispose of its premium toiletries brand Crabtree & Evelyn for Rm465mil, in a bid to realign the group and harness the potential of its core businesses.

In a filing with Bursa Malaysia, the group said KLK and its whollyowned subsidiary, KLK Overseas Investments Ltd, had entered into an unconditional share sale and purchase agreement with Khuan Choo International Ltd, an investment holding company incorporated in Hong Kong.

The group will dispose of 63.7 million shares in CE Holdings Ltd (CEH), the holding company of the Crabtree & Evelyn business, which together with its subsidiaries, would then cease to be subsidiaries of KLK.

The group is expected to realise a gain of approximately Us$41mil or 11.5 sen per share for its financial year ending Sept 30, 2012, arising from the disposal of the premium toiletries brand which is retailed in 28 countries.

The group said it reviewed its operations and interest continuously, and was of the view that it was in the best interest of the group to divest its stake in CEH.

“The proposed disposal will allow KLK to exit from a non-core business and focus on its plantations and oleochemical businesses where the returns are significantly higher,” it said.

It expects the disposal to be completed within three months unless extended in accordance with the agreement.

In a separate filing, the group proposed to acquire a 90% stake in Indonesian PT Global Primatama Mandiri (PT GPM) for Rm3.6mil.

The group will acquire a 52.4% equity stake in PT GPM from Handojo Leman Byono and another 37.6% from Joniansyah via its subsidiary Kl-kepong Plantation Holdings Sdn Bhd, which will subsequently make PT GPM a subsidiary of KLK.

The group expects the acquisition to be completed in 12 months pending the fulfilment of certain conditions including the procurement of the plantation business license.