KUALA LUMPUR: TDM Bhd has accepted an offer from Ikhasas CPO Sdn Bhd to acquire equity interests in PT Rafi Kamajaya Abadi (RKA) and PT Sawit Rezeki Abadi (SRA).

       It said the proposed disposal consists of 93.75 per cent and 95 per cent equity interests in RKA and SRA respectively from TDM as well as 6.25 per cent and 5 per cent equity interests in RKA and SRA, respectively from the minority shareholder for a total of RM115 million cash.

       "The acceptance of the offer letter allows the parties to negotiate exclusively during the exclusivity period and sets out the understanding and intention of the parties,” it said in a filing with Bursa Malaysia today.

       The group also said the proposed disposal provides an opportunity for TDM and its subsidiaries to exit its Indonesian operations and focus its resources on its Malaysian operation.

       "The disposal companies have been loss-making for the past three financial years ended Dec 31, 2018, 2019 and 2020 and are not expected to be profitable in the near term,” it said.

       It added that the offer shall be conditional on TDM and disposal companies fulfilling certain agreed specific conditions within six months from the date of TDM’s acceptance of the offer or such longer period as may be agreed between the parties. - Bernama