CAHYA MATA INCREASES STAKE IN MALAYSIAN PHOSPHATE ADDITIVES

KUALA LUMPUR, Jan 14 (Bernama) -- Cahya Mata Sarawak Bhd’s (CMSB) wholly-owned subsidiary, Samalaju Industries Sdn Bhd (SISB), has turned Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) into a subsidiary by subscribing to new MPAS shares for RM64.24 million in cash.

In a statement today, CMSB said the subscription of 64.24 million shares raised the group’s stake in MPAS to 60 per cent from 49.94 per cent previously.

MPAS was set up as a joint-venture company between SISB, Malaysian Phosphate Venture Sdn Bhd and Arif Enigma Sdn Bhd, to construct and operate an integrated phosphate complex in Samalaju Industrial Park, Sarawak.

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CMSB said construction of the plant was on-going and the first phase, comprising three integrated plants, was targeted for completion by end-2020.

“The plant will produce yellow phosphorous, technical grade phosphoric acid and food grade phosphoric acid, with an annual production capacity of 48,000 tonnes, 75,000 tonnes and 60,000 tonnes, respectively,” it said.

CMSB group chief executive officer (corporate) Datuk Isaac Lugun said this was a strategic move to increase the group’s footprint in the Sarawak Corridor of Renewable Energy.

“The increase in our stake in MPAS is in line with our growth strategy for our strategic investments to drive the group’s next wave of growth.

“The aim of this growth strategy is for our traditional core businesses and our strategic investments to equally contribute to double the group’s earnings in the next five years,” he said.

Lugun added that MPAS’ first phase of production was expected to commence by end-2020 and this project should contribute significantly towards the group’s earnings in the future.

-- BERNAMA