Kuala lumpur: TMK Chemical Bhd has revealed plans to acquire the entire equity interest in Chemical Company of Malaysia Bhd (CCM) from Batu Kawan Bhd (BKB) for an indicative purchase price of RM920 million. This acquisition excludes certain assets and will be executed on a cash-free, debt-free basis.

According to BERNAMA News Agency, TMK Chemical has issued a non-binding letter of intent to BKB, outlining its offer to acquire CCM, including the full economic interest in its subsidiaries and associated companies. The offer excludes specific assets, which consist of an associate company and two parcels of land owned by CCM. The inorganic chemicals specialist announced through a stock exchange filing that BKB has accepted the indicative non-binding offer in principle.

The acquisition's purchase consideration will be settled through cash and the issuance of new ordinary shares in TMK Chemical, valued at RM1.9098 per share. This share issue price is based on the five-day volume weighted average market price of TMK Chemical shares, as recorded on Bursa Malaysia Securities Bhd as of May 31, 2026. With this transaction, BKB is expected to hold at least a 20 percent stake in the enlarged issued shares of TMK Chemical.

TMK Chemical shares experienced a slight decline, closing four sen, or 1.75 percent, lower at RM2.25 per share.