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IOI Corp to sell Hong Kong unit to Loders for US$72.7m
25/01/2018The Edge

KUALA LUMPUR (Jan 25): IOI Corp Bhd is selling its entire stake in IOI Edible Oils (HK) Ltd (IEO HK) to Loders Croklaan Group BV for US$72.7 million, as part of a previously announced transaction to sell a 70% stake in its wholly-owned specialty oils and fats manufacturing arm to US-based Bunge Ltd.

In September last year, IOI had announced that it was disposing of its 70% equity interest in Loders to Bunge for about RM4 billion cash.

IOI said IEO HK is included as part of the proposed disposal in view that IEO HK, which owns a specialty oils and fats plant being built in Xiamen, China, is involved in similar businesses as Loders Group.

In a filing with Bursa Malaysia today, IOI said it has entered into a share acquisition agreement with Loders to transfer its entire 100% stake in IEO HK to Loders, together with all rights and benefits attaching thereto, in exchange for US$72.7 million.

IOI said the transaction has no impact on the group's consolidated financial position because the gain or loss arising from the internal restructuring will be fully eliminated upon consolidation of the group's financial statements, given that the transaction involves IOI Corp and its wholly-owned subsidiaries.

Upon the completion of the transfer of IEO HK, Loders will become the direct parent of IEO HK.

IOI shares closed up one sen or 0.21% at RM4.67 today, for a market capitalisation of RM29.34 billion.