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.