Hong Seng's healthcare arm HS Bio acquires two industrial properties

Hong Seng executive director and HS Bio director Christopher Chan

KUALA LUMPUR: Hong Seng Consolidated Bhd has proposed to acquire a 100% stake in Premiumway Development Sdn Bhd (PDSB) for RM1.09mil.

In a filing with Bursa Malaysia, Hong Seng said its unit Neogenix Laboratoire Sdn Bhd (Neogenix Lab) had entered into a shares sale agreement (SSA) with the Ong Kah Hoe and Ong Kim Chong @ Ong Hwee Choo to undertake the proposed acquisition of one million ordinary shares, or 100% equity interest in PDSB.

Neogenic Lab is a wholly-owned subsidiary of HS Bio Sdn Bhd which in turn a wholly-owned subsidiary of Hong Seng.

“In view of the continuous expansion and growth of the healthcare businesses, HS Bio intends to centralise and integrate the operations of its healthcare subsidiaries for better management purpose and to increase the business operation efficiency,” it said.

Pursuant to the SSA, HS Bio intends to acquire the properties owned by PDSB to allow HS Bio to grow and expand its healthcare operations in particularly its lab coverage and capacity to help the nation fight against Covid-19.

PDSB is the registered proprietor and beneficial owner of two units of industrial properties located at Section 51, Petaling Jaya, comprising a single-storey detached factory with an annexed 4-storey office block with total built up area of 33,500 sq ft, and a single-storey detached office warehouse with an annexed 2-storey office block with total built up area of 9,272 sq ft.

In a statement, Hong Seng executive director and HS Bio director Christopher Chan said: “The proposed acquisition is aimed at obtaining the properties belonging to PDSB for the purpose of setting up HS Bio’s head office following the group’s progressive expansion which requires a larger operating space.”

“As HS Bio continues to expand and grow its healthcare business, it is crucial for us to centralise and integrate the operations of our healthcare subsidiaries at the said properties for better management and efficiency of business operations,” he added.

Hong Seng said the larger space would enable the capacity expansion of the group’s wholly-owned subsidiary, HS Cloud Lab Sdn Bhd which operates a laboratory management platform offering critical logistics and supply chain solutions for reputable laboratories and clinics.