UBG ... Aug10

PetroSaudi International Ltd (PSI), in a letter to UBG, said it had received in-principle approval from the relevant regulators in Saudi Arabia to enable it to acquire a stake in UBG from Cahya Mata Sarawak Bhd (CMS) and its subsidiary PPES Works (Sarawak) Sdn Bhd.

In December 2009, PetroSaudi had offered to acquire all shares in UBG Bhd for RM2.50 per share, and it would take UBG private and de-list it.

CMS had informed UBG in January 2010 that CMS’ wholly-owned subsidiary Concordance Holdings Sdn Bhd and 51%-owned PPES planned to accept the offers from PetroSaudi to acquire all the 25 sen shares they held in UBG as at Dec 29, 2009 totalling 37.21% subject to the approval of their shareholders and the relevant authorities.

At RM2.50 per share, the stake would cost PetroSaudi RM465.53mil.

PetroSaudi, which is buying the stake through wholly-owned unit Javace Sdn Bhd, was awaiting the formal documented approval, which is expected to be received by mid-September 2010.

As at the date of this announcement, the company (UBG) has yet to receive any notice of takeover from PetroSaudi or Javace Sdn Bhd.

PetroSaudi, an investment holding company with its head office in Saudi Arabia, focuses on energy, construction and other strategic projects in various regions around the world, leveraging on its in-depth knowledge of complex global systems that define the various industries.

It was reported that CMS would gain RM353.9mil from the sale of its stake in UBG, and up to RM352.5mil had been earmarked for potential investment capital to take advantage of business opportunities that Sarawak and the Sarawak Corridor of Renewable Energy (Score) had to offer.