Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 5): IOI Corp Bhd has disposed of a 10% stake in sustainable plant-based products firm Bunge Loders Croklaan Hogeweg (BLC) for about RM466 million.

The sale price consist of  US$84.42 million (RM376.25 million) and 19.72 million euro (RM89.91 million), said IOI Corp. 

The buyer of the stake is Bunge Ltd’s wholly-owned subsidiary Koninklijke Bunge BV (KBBV), the group added in a filing with Bursa Malaysia.

IOI Corp said the estimated loss arising from the share sale is about RM50 million, mostly relating to fair value loss from derecognition of the terminated put and call options.

“The share sale is provided for in the shareholders’ agreement (SHA) entered into by KBBV and the company in 2018, and the share sale consideration is based on the mechanism for the put and call options provided in the SHA,” said IOI Corp.  

“With the completion of the share sale, the company’s equity interest in BLC has reduced from 30% to 20% and accordingly, the existing put and call options provided in the SHA have been terminated.

“The existing business collaboration between the company and Bunge remains, and both parties will continue to harness the benefits of existing synergistic partnership in expanding BLC’s business,” the group said. 

Shares in IOI Corp closed one sen or 0.24% lower at RM4.12 on Friday (Aug 5), giving the group a market value of RM25.90 billion.

Edited ByS Kanagaraju
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