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