KLK to sell 20% of KLK Premier Capital for US$44m

PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) plans to dispose of a 20% stake in KLK Premier Capital Ltd to Japan's Mitsui & Co Ltd for US$44 million (RM154 million).
In a filing with Bursa Malaysia, KLK said the disposal of the stake will allow the group to leverage on Mitsui's business and marketing strategies in China and technological expertise in oleochemical downstream manufacturing activities.
KLK Premier Capital holds 100% of Taiko Palm-Oleo (Zhangjiagang) Co Ltd, which is involved in the manufacturing and trading of fatty acids, glycerine, soap noodles and triacetin.
The disposal is expected to result in a gain before tax of US$33.3 million for KLK, however it will not be recognised in the profit and loss account of the group as it will be accounted as an equity transaction.
Upon disposal, KLK will still hold an 80% stake in KLK Premier Capital.