Hong Seng acquires 32.61% stake in Classita

KUALA LUMPUR: Hong Seng Consolidated Bhd has acquired 402 million shares or 32.61% in Classita Holdings Bhd for RM60.31mil or 15 sen a share in an off-market deal.

The healthcare group with interest in glove making, financial services as well as medical and healthcare-related supply chain management said the stake accounted for 15.53% of its consolidated net assets.

Classita, formerly Caely Holdings Bhd, is engaged in property development and construction, manufacturing and sales of undergarments as well as direct selling and retail of ladies’ undergarments, childcare and maternity products, and other consumer products.

“The purchase consideration is funded via the group’s internally generated funds,” Hong Seng said in in a filing with Bursa Malaysia.

It said the stake buy was an opportunity for the group to invest in the promising prospects of Classita’s undergarments manufacturing and property development and construction businesses.

Classita recently completed a rights issue exercise and raised RM88mil for its operations.

Its undergarment manufacturing business is seeking new export markets while its property business in Bentong, Pahang, is focused on housing.