Poh Lian buying RI pulp mill

Poh Lian buying RI pulp mill

SINGAPORE (AFX-ASIA): Poh Lian Holdings said it is buying an
Indonesian pulp mill from Anrof Singapore Ltd for US$385 million
as part of initiatives to diversify its business.

Poh Lian chairman Chia Quee Hock said the current highly
competitive climate in the construction industry had led to a
search for opportunities that could help increase shareholders
value.

Payment will take the form of $45 million in cash and
approximately 1.539 billion new Poh Lian shares at S$0.38 each to
the six shareholders of Anrof Singapore.

The six Anrof Singapore shareholders are Tektronix Industries
Ltd, MEI Project Engineers Pte Ltd, E-Infohigh Ltd, Automatrix
Technology Ltd, Drayson Technology Ltd and Adriatic Assets Ltd
for a total of $385 million.

The Indonesian pulp mill is held by Anrof subsidiaries PT MHB
and PT MBBM.

Upon completion of the deal, the six Anrof shareholders will
own a 79.70 percent stake in Poh Lian.

Tektronix, one of the six Anrof shareholders, is guaranteeing
that consolidated net profit of the two Indonesian pulp mill
companies will not be less than S$20.0 million for the 12 months
after the deal is completed.