OCBC's subsidiary to acquire 5 companies from PacificMas Berhad

OCBC Capital Malaysia expects to acquire the target companies for a total amount of about RM450 million.

In a release, Oversea-Chinese Banking Corporation Limited announced that its wholly-owned subsidiary, OCBC Capital (Malaysia) Sdn Bhd has made an offer to acquire the following companies from its 63.5% owned listed subsidiary, PacificMas Berhad:

(a) 100% equity interest in Pac Lease Berhad (“Pac Lease”) comprising of 115,000,000 ordinary
shares of RM1.00 each;
(b) 85% equity interest in Pacific Mutual Fund Berhad (“PMFB”) comprising of 4,250,000 ordinary
shares of RM1.00 each;
(c) 100% equity interest in PB Pacific Sdn Bhd (“PBPSB”) comprising of 10,000 ordinary shares of
RM1.00 each;
(d) 100% equity interest in PacificMas Fidelity Sdn Bhd (“PFSB”) comprising of 50,000,000 ordinary
shares of RM1.00; and
(e) 100% equity interest in PacificMas Capital Sdn Bhd (“PCSB”) comprising of 53,000,000 ordinary
shares of RM1.00 each.

Pac Lease, PMFB, PBPSB, PFSB and PCSB are collectively referred to as the “Target Companies”. The Offer if accepted will be further subject to the finalisation and execution of a definitive agreement between PacificMas and OCSB in relation to the sale and purchase of the Target Companies.

OCBC Bank believes that the Target Companies, if acquired and owned directly by OCSB rather than through PacificMas, can be more efficiently managed and integrated organisationally within the OCBC Group (OCBC Bank and its subsidiaries on a consolidated basis).

The aggregate purchase consideration for the Proposed Acquisitions is RM450 million, and shall be satisfied by way of an amount of approximately RM164 million payable by OCSB to PacificMas in cash on completion of the Proposed Acquisitions, and the balance amount of approximately RM286 million to be recorded as an amount due and owing by OCSB to PacificMas payable within one year from the date of the Acquisition Agreement.