United Malacca Berhad (KLSE:UMCCA) entered into a conditional sale and purchase agreement to acquire 88.2% stake in International Natural Resources Pte Ltd from Durham Holdings Ltd. for $66.4 million on December 15, 2015. Under the terms of the agreement, the consideration includes refundable earnest deposit of $1 million which was paid on October 3, 2014, escrow amount of $6.6 million and $58.8 million will be paid on the completion date. United Malacca Berhad entered into an escrow agreement with Durham Holdings Ltd. and OCBC Bank (Malaysia) Berhad as the escrow agent to receive, hold, distribute and deliver escrow amount.

The acquisition will be funded by a term loan of $50 million from OCBC Bank (Malaysia) Berhad and the remaining balance is expected to be funded from internal funds. The closing of the transaction is subject to Bank Negara Malaysia approval and is not subject to approval from shareholders of United Malacca Berhad. The transaction is expected to close on fifth business day after all the conditions are fulfilled or waived. Bank Negara Malaysia approved the transaction on January 11, 2016. All conditions were fulfilled on January 21, 2016. The acquisition is expected to be completed by the first quarter of 2016. As of January 8, 2016, the long stop date was extended to January 22, 2016. The acquisition will not have any effect on issued and paid-up share Capital, net assets, earnings and earnings per share of United Malacca Berhad. KAF Investment Bank Berhad acted as financial advisor to United Malacca Berhad. QUEK Li Fei of Colin Ng & Partners LLP acted as legal advisor to United Malacca Berhad. Lisa Pearce and Zitian Ng of Harneys acted as legal advisor to United Malacca Berhad.

United Malacca Berhad (KLSE:UMCCA) completed the acquisition of 88.2% stake in International Natural Resources Pte Ltd from Durham Holdings Ltd. on January 22, 2016.