PETALING JAYA: Petronas Chemicals Group Bhd’s (PCG) wholly owned unit, Petronas Chemicals Fertiliser Sabah Sdn Bhd (PCFS), has entered into a share purchase agreement (SPA) with Sabah state government’s wholly owned SMJ Sdn Bhd in relation to the divestment of 25% equity interest held by PCG in PCFS for a total consideration of RM1.25 billion.
PCG said in a filing with Bursa Malaysia yesterday the divestment is expected to be completed by the end of the second quarter of 2023. Upon completion, PCG and SMJ will have 75% and 25% ownership in PCFS, respectively.
The divestment amount of RM1.25 billion is based on the net book value of the plant, property, and equipment of PCFS as of the financial year ended Dec 31, 2022.
The divestment will not have any effect on the issued and paid-up capital of PCG as the divestment does not involve issuance of shares in PCG.
According to the announcement, Sabah had expressed its interest to own equity in PCFS since PCG undertook the construction of an integrated ammonia and urea plant.
“PCG had considered the state as a potentially strategic partner in PCFS as the partnership would provide PCG with the ability to position itself as the preferred partner in shaping and delivering the aspiration of the state to have greater participation in petrochemical industry; and the opportunity to develop a robust working relationship with the state which could unlock areas of cooperation that could derive mutual benefits,” it said.
