Investment Highlights

• WSC Group and WSC Capital has entered into a share sale agreement with Agro Panorama Sdn Bhd (APSB) for the disposal of WS Agro Industries Pte Ltd. (WS Agro)

• This disposal is for a total cash consideration of USD6.0m

• The purpose of this disposal is to streamline, realign and rationalise the business activities of the group

• Revert to NEUTRAL with an unchanged TP of RM1.04

Selling off plantation arm, WS Agro Industries. WSC Group and WSC Capital have entered into a share sale agreement with Agro Panorama Sdn Bhd (APSB) for the disposal of WS Agro Industries Pte Ltd. (WS Agro). This disposal is for a total cash consideration of USD6.0m. This amount is based on the approximate carrying value of WS Agro’s investments in the plantation business. Under this deal, APSB will acquire the following,

- WS Agro Ordinary shares representing 100% of the equity interest in WS Agro for a total cash consideration of USD3.0m

- WS Agro Preference Shares representing 100% of the total redeemable preference shares in WS Agro for a total cash consideration of USD3.0m

Purpose of disposal. The purpose of this disposal is to streamline, realign and rationalise the business activities of the group. For 9MFY17, WSC’s plantation segment has not contributed any profit yet, resulting in a cumulative RM4.1m loss before tax.

WS Agro Industries Sdn Bhd. WS Agro was incorporated in Singapore on 8 November 2011 with a starting paid-up share capital of SGD1 (equivalent to RM2.4586 on that date). Currently total issued and paid-up share capital is USD2,000,000.00 which comprises of 2,000,000 ordinary shares and SGD1.00 comprising 1 ordinary share respectively and USD3,000,000.00 comprising 3,000,000 redeemable preference shares.

Agro Panorama Sdn Bhd. APSB was incorporated on 6 December 2017 with an initial issued and paid-up share capital of RM1.00 comprising 1 ordinary share. APSB is principally involved in investment holding, plantation and agro base industry.

Source: MIDF Research - 22 Dec 2017