KUALA LUMPUR (March 1): KUB Agro Holdings Sdn Bhd (Kubah), a wholly owned subsidiary of KUB Malaysia Bhd, is acquiring the 40% equity interest in KUB Sepadu Sdn Bhd (KUBS) not in its control from Medan Sepadu Sdn Bhd (MSSB) and Lembaga Amanah Kebajikan Kaum Melanau Sarawak (Lembaga Amanah) for RM60 million.

In a filing with Bursa Malaysia, KUB Malaysia said that Kubah will acquire 2.6 million ordinary shares comprising 1.95 million shares, or 30% interest, from MSSB, and the remaining 650,000 shares from Lembaga Amanah.

"This would involve MSSB's 30% equity interest or 1.95 million ordinary shares in KUBS for RM45 million, and Lembaga Amanah's 10% equity interest or 650,000 ordinary shares in KUBS for RM15 million, totalling RM60 million cash consideration," it said.

KUB Malaysia said the acquisition is being undertaken to regain control of KUBS, which is in liquidation.

"The proposed acquisition will enable Kubah (and indirectly KUB Malaysia) to have full ownership and management control of KUBS, and hence allow the board to deal with KUBS' estates as it deems fit," it added.