♦ Disposal is at 2.13x P/B. Paramount announced that, together with Jerneh
Asia Bhd (JAB), it had entered into a conditional share purchase agreement
(SPA) with ACE INA for the disposal of their respective equity interest
(Paramount 20%, JAB 80%) in Jerneh Insurance Bhd (JIB). To recap, the
acquirer - ACE INA is a US-based insurance company, providing commercial
property and casualty insurance and re-insurance services. The proposed
disposal is for a total cash consideration of RM654m – RM130.8m for
Paramount and RM523.2m for JAB. This translates to a valuation of 2.13x
P/B, based on JIB’s net book value of RM307m as at June 2010. Note that,
the SPA is conditional upon Paramount and JAB obtaining their respective
shareholders’ approvals within 60 business days following the signing of the
SPA or such later date agreed in writing by the parties.
Paramount Corp Berhad : Officially Entered Into SPA For The Disposal Of Jerneh - 08/10/2010
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