KUALA LUMPUR: HLT Global Bhd has has proposed to acquire the remaining 45% stake in glove making unit HL Rubber Industries Sdn Bhd (HLRI) for RM90mil.
The company told Bursa Malaysia today that it will issue 90 million new shares at RM1 each to pay for the acquisition.
For the 10-month ended Oct 31, 2020, HLRI recorded an unaudited profit after tax of RM32.58mil the back of a revenue of RM125.32mil.
"The Group is expected to benefit from the Proposed Acquisition in the future from both financial and operational perspectives," it said.
As it is, HLRI is a 55% subsidiary of HLT Global.
The company said it had entered into a conditional share sale agreement (SSA) today with Suntel International Co Ltd, Hup Lek Engineering & Trading Sdn Bhd and Teng Kok Fah for the proposed acquisition of the 4,200,000 HLRI shares (40%) held by them.
The purchase will be setlled via the issuance of 80 million new HLT Global shares.
"As at to date, HLT Global is in the midst of negotiation with Lau Siong Hut for the acquisition of the remaining 525,000 HLRI shares, which represent 5% of the issued share capital of HLRI, owned by LSH for a purchase consideration of RM10mil on parallel terms as the SSA," it said.