Remcorp in talks with Sime Darby to divest Ramunia stake
The Sun (Financial Daily)
2 October 2006

RAMUNIA Energy & Marine Corporation Sdn Bhd (Remcorp) is in talks with Sime Darby Bhd for the divestment of its 50.8% stake in Ramunia Holdings Bhd, the listed oil and gas fabricator said.

Replying to a Bursa Malaysia query last Friday, Ramunia said it had been notified by Remcorp that the latter was in preliminary discussion with Sime Darby on the possible divestment of Remcorp’s stake in the company after making due and diligent enquiry with all its directors, major shareholders and people familiar with the matter.

The announcement confirms a FinancialDaily report last Thursday that Sime Darby is believed to be proceeding with a planned acquisition of Ramunia’s block from its chairman Datuk Azizul Rahman Abdul Samad and a subsequent mandatory general offer for all the remaining shares in Ramunia.

According to the latest Bursa Malaysia data, Azizul Rahman holds a 50.8% stake in Ramunia via Remcorp.

Ramunia said it would make the appropriate announcement to Bursa Securities in a timely manner should any of its activities fall within the ambit of the Listing Requirements.

In Thursday’s report, FinancialDaily quoted sources as saying that Sime Darby would undertake the acquisition directly, instead of via its subsidiary Sime Engineering Bhd as had been earlier speculated, as the process would be more expedient without the need to go through shareholders’ approval.

A source told FinancialDaily: “ Sime Darby may consider merging Ramunia with Sime Engineering after the takeover exercise is completed.”

The price tag for the deal has been speculated as RM750 million based on the RM1.20 for each of its entire share capital of 236.73 million of 50 sen each, 164 million irredeemable convertible unsecured loan stocks (ICULS), and 100.65 million irredeemable convertible preference shares (ICPS), and 65 sen for each its 230 million warrants.

However, it is learnt that the offer price could be lower than RM1.20.