Kim Teck Cheong Consolidated Berhad (KTC) has formally signed the agreement for the Sales of Shares for the Proposed Acquisition of Popular Trading (Borneo) Corporation Sdn Bhd (PTBC). This Agreement is to finalise the terms and conditions precedent to the Memorandum of Understanding (MOU) that KTC had signed earlier on 11 January 2016 for this Proposed Acquisition of four (4) million PTBC Shares representing 100% equity interest in Popular Trading.
The purchase consideration of the Proposed Acquisition is yet to finalised at this juncture. The total estimated purchase consideration of the proposed acquisition will be based on a thorough due diligence process that will take into consideration PTBC’s Net Asset Value excluding investment in subsidiary companies as at 31st December 2015 and the audited net profit after tax for the last three financial years.
“The Proposed Acquisition is in line our expansion plans to further develop our business growth in East Malaysia and once we do complete the acquisition, Popular Trading will provide us with an additional strong channel of resources for us to achieve our business goals and boost our financial growth.” said Mr. Dexter Lau, Executive Director of KTC.
Popular Trading is a prominent household name in East Malaysia with 48 years of experience in the line of distribution, wholesale trading and food manufacturing covering Sarawak, Sabah and Labuan. Seeing synergetic business with high growth potentials, KTC has proposed to acquire the entire trading operation. Hence, upon a successful acquisition of Popular Trading’ trading operation, KTC’s business presence will be further expanded in the state of Sarawak. KTC will also be able to leverage on Popular Trading’ respected profile with their 48 years of business partners and clients, also enabling KTC to build immediate business prominence in Sarawak.