PPB said on Friday, Oct 30 that as part of the transaction, it was also selling its 50% stake in Kilang Gula Felda Perlis Sdn Bhd also to Felda Global ventures for RM26.31 million.

The company said it was also disposing of parcels of land measuring 5,797 hectares in Chuping, Perlis for a cash consideration of RM45 million

It added that its 49% associate Grenfell Holdings Sdn Bhd was also selling a 20% stake in Tradewinds (M) Bhd (TWM), representing 59.29 million shares to Felda Global Ventures for RM207.53 million or RM3.50 per share.

The cash consideration of RM3.50 per TWM share is 25.90% and 21.95% over RM2.78 and RM2.87, being the five-day volume weighted average market price (VWAP) of TWM shares and three-month VWAP of TWM Shares up to Oct 29, 2009 respectively.

Felda Global Ventures is a unit of the Federal Land Development Authority and it is the group's integrated commercial arm.

On the disposal of MSM, PPB said it would be the sole beneficiary of all profits after tax of MSM from Jan 1, 2009 up to Dec 31, 2009.

It added the price tag for the sale of MSM represented price-to-earnings ratio of 9.78 times and price-to-book ratio of 2.46 times.

PPB said its cost of investment in MSM was RM50.79 million, made from 1976 to 1999. It would stand to gain RM1.17 billion and RM723.81 million at company and group level respectively.

"The proposed disposals present an opportunity for PPB to realise its investments in MSM, Kilang Gula and the Chuping land at a substantial gain.

"The net disposal proceeds can potentially be used for other strategic investment options and opportunities that may be available to the group both domestically and overseas with the ultimate objective of providing optimum benefits and returns to the company and its shareholders," it said.