02 December 2014 | News | By BioSpectrum Bureau
CCM to sell its six pharma units to subsidiary
CCM is planning to reinvest the money from the disposals into its subsidiaries
Singapore: Chemical Company of Malaysia (CCMB) recently announced that the company is planning to sell its six pharmaceutical units in Malaysia, the Philippines and Singapore to its subsidiary CCM Duopharma Biotech Bhd (CCMD) for RM133.3 million.
CCM Duopharma has allocated RM140 million to pay for the acquisition. It will invest RM50 million to expand the group's pharmaceutical manufacturing operations.
CCM said in statement that the acquisition is expected to improve utilization rates by channeling capacity of any production facility within CCM Duopharma to any under-utilised production facilities.
CCM futher mentioned that the compnay is planning to use RM132.525 million of the proceeds from the disposals to reinvest in its subsidiaries while the remaining RM 800,000 is for estimated expenses.