KUALA LUMPUR, Malaysia--IOI Corporation Bhd. (1961.KU), Malaysia's second-largest listed palm-oil firm, said Tuesday that it has agreed to sell a 70% stake in its unit Loders Croklaan Group to U.S. agricultural trader and processor Bunge Ltd. for $946 million cash.
IOI Corporation, controlled by Malaysian tycoon Lee Shin Cheng, said the proposed disposal allows the company to partially unlock the value or monetize its investment at an attractive consideration, according to a local stock-exchange filing.
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IOI Corporation is expected to record a gain of 2.51 billion ringgit ($597.9 million) from the proposed disposal and from the re-measurement of IOI Corporation's remaining 30% stake, according to the filing.
IOI Corporation plans to use the proceeds for future investment opportunities or working capital, dividend payment to shareholders and repayment of borrowings, the filing showed.
The proposed disposal is expected to be completed by the fourth quarter of 2018, the company added.
Shares of IOI Corporation ended Tuesday slightly higher at MYR4.55. It has climbed some 3% year-to-date.
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(END) Dow Jones Newswires
September 12, 2017 07:29 ET (11:29 GMT)