January 3, 2024

 

Malaysia's Harn Len looks to acquire all shares in Tiger Aquaculture

 

 

Malaysia's Harn Len Corporation Bhd has proposed to acquire an aquaculture outfit which owns 30 ponds on a 300-acre piece of land in Pekan, Pahang, Malaysia, from its substantial shareholder, Mohamed Nizam Jakel, through a RM42.5 million (US$9.2 million) share deal.

 

In a bourse filing on December 29, the Johor-based oil palm planter and property developer said it had entered into a conditional share sale agreement with Nizam to acquire the entire 100,000 shares in Tiger Aquaculture Sdn Bhd (TASB).

 

Under the terms of the deal, the RM42.5 million purchase consideration will be satisfied through the issuance of 47.22 million new Harn Len shares, constituting 7.71% of its enlarged share base, to Nizam.

 

The issuance of new shares will involve both ordinary shares and Class A Islamic Redeemable Convertible Preference Shares (RCPS-i A) at 45 sen per share, raising Nizam's stake in Harn Len to 12.8%.

 

Harn Len also proposed to amend its constitution to facilitate the creation and issuance of the RCPS-i A, according to the filing.

 

Harn Len said that the acquisition is aimed at reducing its dependence on the oil palm plantation segment and diversifying its earning base by adding income from the aquaculture business.

 

"Harn Len has been actively participating in the operation of the five ponds since the signing of the memorandum of agreement (MOA) with TASB and has seen positive progress in the breeding of prawns. Accordingly, we believe that the proposed acquisition could enhance the group's profitability and shareholder value," the company said.

 

Harn Len had signed the binding MOA with TASB on August 24 to jointly operate the aquaculture business.

 

The group said the proposed acquisition will enable it to further expand its presence in the agriculture industry.

 

The acquisition, subject to the approval of Harn Len shareholders and Bursa Securities, is expected to be completed in the second quarter of 2024. Malacca Securities has been appointed as the principal adviser for the proposals.

- The Edge Malaysia