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- OM Holdings (OMH) enters into a binding offer with Samalaju Industries (SISB) to retake full ownership of its two Malaysian subsidiaries for US$120 million (A$165 million)
- The company, through another subsidiary OM Materials S, currently owns 75 per cent of OM Materials Sarawak and OM Materials Samalaju
- Approximately 165.5 million shares and 46.6 million irredeemable convertible preference shares in OM Sarawak, and around 32.1 million shares in OM Samalaju will be sold to OM Holdings, subject to shareholder approval
- OM Holdings intends to fund the US$120 million purchase through a combination of existing cash reserves, future operating cash flows, and bank borrowings or an equity raising in the second half of 2022 if needed
- OMH shares are up 2.59 per cent, trading at 89.3 cents
OM Holdings (OMH) has entered into a binding offer with Samalaju Industries (SISB) to retake full ownership of its two Malaysian subsidiaries for US$120 million (A$165 million).
The company, through another subsidiary OM Materials S, currently owns 75 per cent in OM Materials Sarawak and OM Materials Samalaju which will increase to 100 per cent once the binding offer is complete.
Approximately 165.5 million shares and 46.6 million irredeemable convertible preference shares in OM Sarawak, and around 32.1 million shares in OM Samalaju will be sold to OM Holdings, subject to shareholder approval.
The acquisition is advantageous to the OMH Group and its strategy of investing further in ferroalloy smelting, building organically on the success of the OM Sarawak smelter facility.
“This transaction marks a key milestone in our journey and complements the wider OMH strategy of growing our Sarawak smelter and becoming the leading supplier of ferroalloys globally – building significant value for all shareholders,” Executive Chairman and CEO Low Ngee Tong said.
OM Sarawak owns and operates a ferrosilicon and manganese alloy smelter in Sarawak, East Malaysia, with an annual production capacity of approximately 200,000 to 210,000 tonnes of ferrosilicon, and approximately 250,000 to 300,000 tonnes of manganese alloy.
The plant also consists of a sinter plant that has a design capacity to produce 250,000 tonnes of sinter ore per annum.
OM Samalaju develops and manages selected capital projects for OM Sarawak.
OMH intends to fund the US$120 million purchase through a combination of existing cash reserves, future operating cash flows, and bank borrowings or an equity raising in the second half of 2022 if needed.
OMH shares were up 2.59 per cent, trading at 89.3 cents as of 11:49 am AEST.
