Hong Leong Industries Bhd has proposed undertaking an internal restructuring exercise to streamline the operations of its ceramic tiles division.
It proposes to transfer its entire equity interest in five subsidiaries to wholly-owned unit Guocera Tile Industries (Kluang) Sdn Bhd for RM42mil.
The five subsidiaries are wholly-owned Guocera Tile Industries (Kapar) Sdn Bhd, wholly-owned Ceramic Research Co Sdn Bhd, wholly-owned Guocera Marketing Sdn Bhd, 70%-owned Guocera Tile Industries (Labuan) Sdn Bhd and 64%-owned Guocera Tile Industries (Meru) Sdn Bhd.
Hong Leong Industries also proposes to transfer Guocera Tile Industries (Kluang)'s business of manufacturing and sale of ceramic tiles and assets, excluding land and building, to Guocera Tile Industries (Kapar) for a sum equivalent to the unaudited net tangible assets (NTA) of the business and assets as at March 31, 2003.
Hong Leong Industries said the transaction would not have any material impact on the NTA and earnings per share of the group for the financial year ending June 30, 2003.