KUALA LUMPUR — TMK Chemical Bhd just put a RM939.9 million price on Malaysia’s biggest chlor-alkali name — and the calendar still runs to 1Q2027.
In a Friday filing reported by The Star, TMK said it entered a conditional SPA to acquire Chemical Company of Malaysia Bhd (CCM). Consideration is RM438.5 million cash plus 262.5 million new TMK shares priced at RM1.9098 each.
CCM is Malaysia’s largest chlor-alkali producer, with chlor-alkali, sulphur derivatives and polymer chemicals across nine facilities on the Peninsula. Its customer base spans rare earth processing, water treatment, rubber gloves, oleochemicals, oil and petrochemicals, electronics and textiles. For the year ended 30 Sep 2025, the CCM group posted revenue of RM701.8 million and PATAMI of RM76.6 million.
TMK frames the deal as trading, storage and logistics meeting a manufacturing base — aiming for scale in procurement, logistics and distribution. Executive director and managing director Wong Kin Wah called it a transformation step, noting CCM’s growth since privatisation and delisting in 2021, and Batu Kawan’s consolidation of chemical operations under CCM. “With close to four decades of experience in the inorganic chemicals industry, TMK understands this business well and sees a strong strategic fit,” he said, adding the combination should create “a stronger, more integrated chemicals business with significantly greater scale and reach.”
Separately, RHB Research initiated coverage with a buy and target price of RM3.60 — about 19% upside and an estimated ~3% FY2026 dividend yield, according to The Star. RHB tied TMK to rising Lynas chemical demand (60–70% higher since early 2026), hydrochloric acid prices more than doubling year to date, and TMK’s gross profit margin at 26% in 2Q2026 versus 19% a year earlier. RHB estimates CCM averaged about RM75–80 million annual PAT over the past three years, and that the acquisition could add RM165–185 million in annual HCl revenue.
Bottom line: The RM939.9 million headline is set — but completion still sits in 1Q2027, subject to approvals, and certain CCM assets and interests are carved out per TMK’s 18 Sep 2026 announcement.
— WWC NEWSDESK
