KUALA LUMPUR (March 7): CB Industrial Product Holding Bhd has terminated the sale of its 70% stake in biodiesel producer Gulf Lubes Malaysia Sdn Bhd (GLM) to Kaashi Viswehswara Minerals Pvt Ltd after the Indian firm failed to pay the balance deposit within time.
The termination will have no impact on the group’s issued share capital and is not expected to have any material impact on its net assets, earnings and gearing ratio for the year ending Dec 31, 2022, CB Industrial said in a bourse filing.
The palm oil equipment maker had announced the sale of the 70% stake in GLM for RM55 million three months ago to resolve the management deadlock at the subsidiary.
The group had said that it did not have sole control over GLM because strategic and financial decisions on the subsidiary’s relevant activities required the unanimous approval of all shareholders. It said it was unable to demonstrate unilateral control and the power to influence variable returns at GLM.
After paying an earnest deposit of RM1.1 million, the buyer was required to pay a balance deposit of RM4.4 million and a balance purchase price of RM49.5 million.
CB Industrial’s shares closed down eight sen or 5.26% at RM1.44 with some 1.13 million shares changing hands. The company has a market capitalisation of RM710.28 million.