Malaysia’s Sime Darby Plantation (SDP) and PTT Global Chemical (PTTGC) have divested their collective 100% equity interest in the Asia Pacific business of Emery Oleochemicals and Emery Specialty Chemicals to Edenor Technology in a deal worth RM38 million ($9 million).
Emery Oleochemicals, Emery Specialty Chemicals and their subsidiaries are a 50:50 joint venture between Sime Darby Plantation and PPTGC International.
“The equity consideration of RM38 million is derived based on enterprise value of RM243 million ($57.4 million) less the target net debt of RM205 million ($48.5 million). The final sale consideration will be subject to price adjustments based on the net working capital and net debt position of EOM and ESC at completion,” SDP said in a filing.
Emery Group is involved in the production and sale of fatty acids, fatty alcohols, refined glycerine, oilfield chemicals, ozone acids, plastic additives, methyl esters and other oleochemical derivatives.
“The divestment is conditional upon the restructuring of Emery Group into separate standalone groups in respect of its Asia Pacific business, and the North America and Europe business,” SDP added.
“Post restructuring, Emery Group’s Asia-Pacific business will remain under EOM and ESC, while its North America and Europe businesses, both held under Emery Oleochemicals UK Ltd, will be transferred out from EOM, to be held directly by Sime Darby Plantation and PTTGC on a 50:50 basis,” it added.
Sime Darby Plantation noted that the divestment is conditional upon the restructuring of Emery Group into separate stand-alone groups in respect of its Asia-Pacific business, and the North America and Europe businesses.
Edenor Technology is a 50:50 joint venture between Malaysian management services firm Mega First Corp and 9M Technologies.