CMS raises stake in MPAS project

Cahya Mata Sarawak Bhd’s (CMS) wholly owned subsidiary, Samalaju Industries Sdn Bhd, has increased its stake in Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) from 49.94% to 60%, after it subscribed to 64.24 million new shares in the company for RM64.24 million in cash.

In an exchange filling yesterday, CMS noted that the subscription is a strategic move to bolster the group’s future earnings. MPAS was set up as a joint-venture company to construct and operate an integrated phosphate complex in Samalaju Industrial Park.

The construction work of the plant is currently ongoing and the first phase, comprising three integrated plants, is targeted to be complete by the end of 2020. MPAS will utilise the proceeds from the subscription to finance the construction cost of the project. — TMR