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Borneo Aqua Harvest To Diversify Into Mining
Malaysia Daily Bulletin | 23 November 2015
  • Borneo Aqua Harvest, which is primarily in the aquaculture business, is proposing to buy the entire equity interest of Wullersdorf Resources for RM131 million, to diversify into the exploration for minerals and mining business.
  • While Wullersdorf has not commenced operations, the group noted that the proposed acquisition is undertaken in conjunction with Wullersdorf being identified as a special purpose vehicle to venture into the mining business on a piece of sublease land in Sabah.
  • The proposed acquisition will be done through the issuance of 104.5 million new Borneo Aqua shares at an issue price of RM0.94 per share and the issuance of 34.8 million irredeemable convertible preference shares (ICPS) at an issue price of RM0.94 per ICPS.
  • While Borneo Aqua intends to continue with its existing core aquaculture business, its long-term growth plan includes diversifying its business.

Significance: The group expects additional long-term income through the mining business to contribute positively to its future earnings. The board expects the proposals, which require the approval of its shareholders at an extraordinary general meeting to be convened, to be completed by 2Q16.

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