Ta Ann Holdings Berhad (KLSE:TAANN) entered into a conditional share sale agreement to acquire 30.4% stake in Sarawak Plantation Berhad (KLSE:SWKPLNT) from Coast Capital Sdn Bhd for approximately MYR 170 million on January 11, 2018. Under the terms of the transaction, Ta Ann Holdings Berhad will acquire 84.97 million shares of Sarawak Plantation Berhad for MYR 2 per share in cash. Under the terms, a sum of MYR 16.993 million (10% of the total consideration) will be paid as deposit upon signing of agreement and the sum of MYR 169.94 million (100% of the consideration) within 3 market days following the date falling 14 days from the unconditional date, being the date upon which the direct business transaction is to take place in accordance with the provisions of the agreement. The seller shall undertake to refund or repay the deposit to Ta Ann Holdings Berhad within 5 market days after Ta Ann Holdings Berhad's full payment of the consideration. The consideration will be fully satisfied through bank borrowings up to MYR 130 million and the remaining balance will be satisfied through internally generated funds. Upon completion, Sarawak Plantation Berhad will become an associate company of Ta Ann Holdings Berhad.

The transaction is subject to approval by the shareholders of Ta Ann Holdings Berhad at an extraordinary general meeting will be held on March 23, 2018 and approval by any other relevant authorities/parties. Shareholders of Ta Ann Holdings Berhad approved the transaction in the extraordinary general meeting held on March 23, 2018 and hence the agreement is now unconditional. The acquisition is expected to be completed by April 30, 2018. The transaction is not expected to have any effect on the share capital and substantial shareholders' shareholdings, earnings and EPS of Ta Ann Holdings Berhad for the year ending December 31, 2017. However, it is expected to enhance the NA and NA per share in the future in view of the potential future profit contribution from Sarawak Plantation Berhad. Board believes that the acquisition will be value accretive and synergistic to Ta Ann Holdings Berhad.

AmInvestment Bank Berhad and Inter-Pacific Securities Sdn. Bhd acted as the financial advisors to Ta Ann Holdings Berhad.