EKIB ... Jan11

Janmas Kiara Industries is a full-line producer and supplier of a wide range of geosynthetic products and solutions with primary focus on the Asian markets and the addition of the Emas Kiara production capabilities, employees, and product brands will significantly strengthen the position of TenCate Geosynthetics activities in this rapidly growing region of the world.

Recent Developments …

EMAS Kiara Industries Bhd, a trader and maker of geosynthetic textile products, has signed a deal to sell its main business to a Dutch firm for RM100 million to mainly repay existing debt.

It plans to sell seven of its units to TenCate Geosynthetics Asia Sdn Bhd, a unit of Royal Ten Cate NV, in a deal set to be finalised in early 2011.

The proposed disposal allows the shareholders of Emas Kiara to unlock the value of the business at a premium to the net book value of the assets.

After completing the deal, it will use RM77.6 million to settle existing debt. Another RM21.7 million will be used to fund working capital and the rest is to cover the cost of the deal.

It will also become a cash company and may trigger the PN17 condition as it has sold its main business. This means it has to submit a proposal to revamp its business to maintain its listing status.

The board shall deliberate on whether to return all or part of the cash retained in the company to shareholders and/or to utilise all or part of the cash retained towards new investment opportunities that may arise.

As for TenCate Geosynthetics, the deal will give it a significantly larger position in the supply of geosynthetics solutions to the Southeast Asian markets.