KUALA LUMPUR, Malaysia -- Malaysian Resources Corp. Bhd., controlled by close associates of Deputy Prime Minister Datuk Seri Anwar Ibrahim, is preparing to sell its indirect stake in financial services concern Commerce Asset-Holdings Bhd. to FCW Holdings. FCW, a cable manufacturer, is part of an international consortium involved in construction of the massive Bakun hydroelectric dam project.
New Straits Times Bhd., a newspaper publisher 48%-owned by MRCB, will sell its 20.12% stake in Commerce Asset to FCW for 950 million ringgit ($380 million), sources say. The executives say the transaction will value each Commerce Asset share at about 16 ringgit. The deal, which is expected to be announced before the end of the week, would be largely financed by the issue of new FCW shares.
MRCB and FCW officials couldn't be reached for immediate comment. But evidence that a deal is in the works came Tuesday when MRCB, New Straits Times and FCW requested a suspension in the trading of their shares on the Kuala Lumpur Stock Exchange. MRCB and New Straits Times were last traded at 8.50 ringgit and 13.90 ringgit respectively, while FCW shares closed Tuesday at 6.80 ringgit. Commerce Asset wasn't suspended from trading and closed Wednesday at 16.10 ringgit, up 10 sen a share.
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