<article>Singapore-based <a style="color: #000080;" href="http://www.bloomberg.com/research/stocks/snapshot/snapshot.asp?ticker=OLS:SP" target="_blank">OLS Enterprise Ltd</a> has proposed to acquire phosphate additives producer <a style="color: #000080;" href="http://www.malaysianphosphate.com/mpa-contact.php" target="_blank">Malaysian Phosphate Additives Sdn Bhd</a> (MPA) for S$300 million ($222 million).</article>

Singapore-based <a style="color: #000080;" href="http://www.bloomberg.com/research/stocks/snapshot/snapshot.asp?ticker=OLS:SP" target="_blank">OLS Enterprise Ltd</a> has proposed to acquire phosphate additives producer <a style="color: #000080;" href="http://www.malaysianphosphate.com/mpa-contact.php" target="_blank">Malaysian Phosphate Additives Sdn Bhd</a> (MPA) for S$300 million ($222 million).
OLS, listed on the Singapore Exchange, announced that it had entered into a term sheet with Right Earth Sdn Bhd, Casa Lite Sdn Bhd, <a style="color: #000080;" href="http://www.mtdc.com.my/" target="_blank">Malaysia Technology Development Corporation Sdn Bhd</a> (MTDC) and an individual, Lim Lee Wan, to acquire the entire issued and paid-up share capital of MPA.
This comes less than a week after the company announced plans to transfer from SGX&#8217;s mainboard to the Catalist board.
According to the stock exchange filing yesterday, the purchase consideration of S$300 million would be fully satisfied via an allotment and issue of OLS shares, at an issue price to be mutually determined by OLS and the selling parties.
The newly issued consideration shares shall, upon completion, represent not less than 70 per cent of the enlarged capital of the Company, the statement noted.
While the allotment and issue of OLS shares will enable the selling parties to own more than 30 per cent of OLS’ enlarged share capital, OLS “intends to apply for a waiver of their obligation to make a general offer”.
According to the announcement, MTDC, a wholly owned subsidiary of sovereign wealth fund <a style="color: #000080;" href="http://www.khazanah.com/" target="_blank">Khazanah Nasional Bhd</a>, holds a 40.94 per cent stake in MPA.
In turn, MPA owns 40 per cent of the issued and paid-up share capital in Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) through its wholly owned subsidiary, Malaysian Phosphate Venture Sdn Bhd.
The other shareholders of MPAS are Bursa Malaysia-listed <a style="color: #000080;" href="http://www.cmsb.com.my/" target="_blank">Cahya Mata Sarawak Bhd</a> (40 per cent), through its wholly-owned subsidiary Samalaju Industries Sdn Bhd, and Arif Enigma Sdn Bhd (20 per cent), an investment holding company.
MPAS is in the process of building Malaysia’s and Southeast Asia’s first integrated phosphate complex producing a wide spectrum of phosphate and other products for agricultural, food and industrial use.
At full capacity, the plant is expected to generate sales revenue in excess of MYR2.0 billion ($550 million) per annum.
The MYR1.5 billion plant will be constructed on an area of 350 acres and will leverage on Sarawak’s competitive power rates and infrastructure in the Sarawak Corridor of Renewable Energy as a source of electricity.
OLS executive chairman Koo Ah Seang said the proposed acquisition is a unique opportunity for OLS shareholders to participate in Southeast Asia’s flourishing population and consumption trends.
MPA is a leading producer of phosphorus-based nutrients in the region.
“The board is of the view that the proposed acquisition is an opportunity for the company to acquire a new business which will potentially provide it with a sustainable and growing income stream,” he said in a statement, adding that the proposed acquisition is expected to enhance shareholders&#8217; value as well as strengthen the balance sheet of OLS.
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Singapore-based OLS Enterprise Ltd has proposed to acquire phosphate additives producer Malaysian Phosphate Additives Sdn Bhd (MPA) for S$300 million ($222 million).

OLS proposes to acquire Malaysian Phosphate Additives for $222m

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OLS proposes to acquire Malaysian Phosphate Additives for $222m

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