National Trading and Developing Establishment made an offer to acquire remaining 50% stake in Integrated National Logistics DWC– LLC from Integrated Logistics Berhad for AED 45 million.
January 28, 2019
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National Trading and Developing Establishment made an offer to acquire remaining 50% stake in Integrated National Logistics DWC– LLC from Integrated Logistics Berhad (KLSE:ILB) for AED 45 million on January 23, 2019. National Trading and Developing Establishment entered into a share sale agreement to acquire remaining 50% stake in Integrated National Logistics DWC– LLC from Integrated Logistics Berhad (KLSE:ILB) for AED 45 million on February 13, 2019. As per terms, 10% of the consideration to be paid within 15 days from the date of share sale agreement and the remaining 90% of the consideration to be paid in 12 quarterly installments commencing from April 1, 2020. The consideration will be adjusted if agreement is executed after February 15, 2019. Upon completion, Integrated National Logistics will cease to be Integrated Logistics Berhad’s jointly controlled company. For the year 2018, Integrated National Logistics DWC– LLC reported revenues of AED 23.9 million, total assets of AED 265.1 million, operating loss of AED 14.7 million and total common equity of AED 242.5 million. The transaction is subject to share sale agreement executed before February 15, 2019. The transaction is also subject to the issue of shareholders’ resolution at Integrated Logistics Berhad’s Extraordinary General Meeting for the approval of the transaction. Board of Integrated Logistics Berhad has approved the transaction on January 29, 2019. The Extraordinary General Meeting of Integrated Logistics Berhad shareholders will be held on April 17, 2019. The integrated Logistics Berhad shareholders gave its approval in EGM held on April17, 2019. As of May 15, 2019, all the conditions precedent under the SSA for the proposed disposal of Integrated National Logistics DWC have been fulfilled. As of March 28, 2019, the transaction is expected to complete by mid May 2019. The Board of Integrated Logistics Berhad intends to utilise first payment to part-finance Integrated Logistics Berhad’s future solar project and its working capital. As of March 28, 2019, the Board of Integrated Logistics Berhad is still evaluating plans to optimize the utilization of the proceeds expected from the balance payment. Upon the receipt of the proceeds arising from the proposed disposal (net of all expenses incurred), it shall be placed in interest-bearing deposit accounts with financial institutions until it is fully utilized. On 15 May 2019, the conditions precedent under the SSA have been fulfilled. The Proposed Disposal is expected to be completed within 30 days from the fulfillment of the conditions precedent. Kenanga Investment Bank Berhad (KLSE:KENANGA) acted as a financial advisor for Integrated Logistics Berhad (KLSE:ILB).
ILB Group Berhad is a Malaysia-based renewable energy company. The Company is engaged in the solar energy and related businesses. The Company is engaged in the construction of solar power plants and trading of solar panels. It provides solar system that can be integrated into the building from the initial stages or retrofitted to an existing building. The Company operates a total capacity of approximately 11 mega-watt, alternating current (MWac) of solar plants in Malaysia. It operates two (2) solar power plants: one is located at Seberang Perai, Penang, the 1 mega-watt (MW) solar farm, where photovoltaic technology system is installed and built on a land area of approximately 12,140.6 square meters, and another one is located in Bukit Kayu Hitam, Kedah, which produces 10 MW, covering approximately 178,062 square meters. The Company's subsidiaries include IL Energy Sdn. Bhd. and ILB International (BVI) Limited.
National Trading and Developing Establishment made an offer to acquire remaining 50% stake in Integrated National Logistics DWC– LLC from Integrated Logistics Berhad for AED 45 million.