Mewah International MV4 has executed a share sale and purchase agreement on Apr 3 to acquire 100% equity interest in PT Kencana Inti Perkasa (PTKIP), an Indonesian company which owns and operates facilities in the palm oil business.
The acquisition consideration of IDR102 billion ($9 million) is a combination of share purchase price and takeover of shareholders and bank loan in PTKIP. The consideration will be funded by internal accruals, the company says in a filing.
Following the acquisition, PTKIP will become an indirect wholly-owned subsidiary of Mewah.
The net asset value of the shares being acquired is approximately IDR73 billion.
The transaction is not expected to have any material impact on Mewah's consolidated net tangible assets or earning per share for the current financial year.
Shares in Mewah closed flat on Apr 3 at 31 cents.
