RM1B DEAL: Property and plantation giant has bought 39.55pc stake, triggering mandatory takeover offer
PLANTATION and property giant IOI Corp Bhd has launched a RM1 billion buyout of Unico-Desa Plantations Bhd.
IOI Corp yesterday announced the acquisition of a 39.55 per cent stake, or 339 million shares, in Unico-Desa by its subsidiary, IOI Plantation Sdn Sdn Bhd.
The stake was bought from former Unico-Desa managing director Teoh Hock Chai and Amity Corp Sdn Bhd for RM396.63 million, or RM1.17 per share.
The deal has triggered a mandatory takeover offer for the remaining 60.45 per cent stake in Unico-Desa, IOI Corp said in a filing to Bursa Malaysia yesterday.
The mandatory offer, also at RM1.17 per share, will cost it RM606 million. Collectively, IOI Corp will be paying RM1 billion for all Unico-Desa shares.
Unico-Desa's core business is cultivation of oil palm, palm oil milling and distribution of palm oil and kernel.
It owns 12,700ha of planted land, of which 9,121ha is matured land in Lahad Datu and Kinabatangan, Sabah.
The purchase consideration of RM1.17 was a 37 per cent premium against Unico-Desa's net asset of 85 sen.
IOI Corp said the acquisition will increase its plantation landbank to 196,867ha from 183,207ha.
"This is expected to bring synergistic benefits to IOI Corp as it has an existing 98,088ha planted with oil palm in Sabah," the company said.
Upon completion of the buyout, IOI Corp's gearing ratio will increase marginally 0.07 time to 0.39 time. It does not intend to maintain Unico-Desa's listing.
Unico-Desa has been listed on Bursa Malaysia's Main Market since 2000. It registered a RM25.46 million net profit for the year ended March 31 2013. Unico-Desa's shares closed unchanged at RM1.18 yesterday.