KUALA LUMPUR (April 22): Chemical Company of Malaysia Bhd (CCM) has accepted a Letter of Award from Petroliam Nasional Bhd (Petronas) to supply up to 351,000 tonnes of caustic soda to the latter’s subsidiary for an estimated RM351.9 million.
In a bourse filing, the group said the estimated contract value is based on current market prices, and takes into account the pricing mechanism and such other terms and conditions that may be specified in a price agreement with Petronas.
"Pending execution of the price agreement between the seller and the buyer, the LoA and other documents as specified in the LoA, shall form an integral part of the price agreement," CCM said.
The LoA was accepted by CCM's wholly-owned CCM Chemicals Sdn Bhd. It said the price agreement's term shall start from April 15 and endo on April 14, 2022. The deal comes with a one-year extension option.
The group said the acceptance of the LoA is expected to have a positive effect on the company's earnings and net assets for the financial year ending Dec 31, 2019 (FY19).
The counter closed 1.5% or three sen higher at RM2.03 — with 284,800 shares changing hands — giving the group a market capitalisation of RM335.39 million.
https://www.theedgemarkets.com/article/ccm-secures-rm3519m-job-petronas-supply-caustic-soda
