BCorp to sell en­tire stake in Taiga for RM206.37m

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Ber­jaya Corp Bhd (BCorp) has pro­posed to dis­pose of its en­tire stake in Taiga Build­ing Prod­ucts Ltd to UPP Hold­ings Ltd for RM206.37 mil­lion.

The Taiga group owns and op­er­ates three wood preser­va­tion plants that pro­duce pres­sure-treated wood prod­ucts. It is also a whole­sale dis­trib­u­tor of build­ing ma­te­ri­als. It has 15 dis­tri­bu­tion cen­tres in Canada and two dis­tri­bu­tion cen­tres in Cal­i­for­nia, US. Taiga’s prod­ucts in­clude panel prod­ucts, mould­ings, doors and other spe­cialty prod­ucts.

In a filing with Bursa Malaysia yes­ter­day, BCorp said it and its wholly owned sub­sidiary Ber­jaya For­est Prod­ucts (Lux­em­bourg) S.á.r.l (BFor­est) have en­tered into a share pur­chase agree­ment and a notes pur­chase agree­ment with UPP for the pro­posed dis­posal.

Un­der the share pur­chase agree­ment, BFor­est pro­poses to sell its 39.09% eq­uity in­ter­est in Taiga to UPP for CAD$12.67 mil­lion (RM39.87 mil­lion) or at CAD$1 per sale share.

BFor­est has also pro­posed to sell the en­tire C$46.008 mil­lion prin­ci­pal amount of 14% unse­cured sub­or­di­nated notes in Taiga to UPP for C$52.91 mil­lion or at C$1.15 per sale note, un­der the notes pur­chase agree­ment.

“The pro­posed dis­pos­als rep­re­sent an op­por­tu­nity for the BCorp Group to re­alise its en­tire in­vest­ment in Taiga. The cash pro­ceeds will be utilised for work­ing cap­i­tal of the group,” said BCorp.

The pro­posed dis­pos­als will re­sult in a to­tal net gain of about C$23.14 mil­lion (RM72.82 mil­lion) and is ex­pected to be com­pleted by the first quar­ter of 2017.

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