KUALA LUMPUR: Nationgate Holdings Bhd
has proposed to acquire 100% equity interest in Hesechan Industries Sdn Bhd for RM25mil cash.
In a filing with Bursa Malaysia, NationGate said it entered into a share sale agreement with Heap Seong Chan Company Sdn Bhd (HSCSB) to acquire the entire two million ordinary shares in Hesechan.
Upon completion of the acquisition, Hesechan will become a wholly-owned subsidiary of NationGate.
Hesechan is principally involved in the business of warehousing, manufacturer, general carriers, agents, importers and exporters, wholesalers and retailer, manufacturers and general trading
NationGate said the purchase consideration was arrived at based on a willing-buyer willing-seller basis after taking into consideration, amongst others, the market value of the 99 years’ leasehold land (expiring on Aug 26, 2070) measuring approximately 261,360 sq ft in Seberang Perai, Pulai Pinang.
“The prospects of the acquisition are favourable taking into consideration the group’s competitive strengths and business strategies. The fast-pace nature of the E&E industry coupled with the continuously changing technological landscape globally, the group’s relentless effort in bringing up the value chain of the manufacturing services rendered shall keep us ahead in this competitive market.
“In addition, the group intends to continuously strive for technological advancement and cost-effectiveness and build a strong collaboration in its supply chain ecosystem to better position itself in the EMS market,” NationGate said.
