PETALING JAYA: Hong Seng Consolidated Bhd
’s wholly owned subsidiary HS Green Valley Sdn Bhd (HSGV) has entered into an agreement to acquire all of Hong Seng Frontier Sdn Bhd (HSF) from Velocity Capital Partner Bhd.
The purchase, involving 250,000 ordinary shares worth RM45.25mil, would be entirely financed by cash, with a 10% deposit being paid to Velocity upon execution of the sale and purchase agreement and the balance to be remitted on or before the completion date of the agreement.
HKL Dynamics Sdn Bhd, an 85%-owned subsidiary of Hong Seng and a glove manufacturer, is currently leasing the properties held by HSF for its glove manufacturing business, Hong Seng said in a filing with Bursa Malaysia.
The Hong Seng group is concerned about the risk of tenancy termination, as this will involve substantial costs, equipment dismantling and the acquisition of new licences, which could disrupt operational continuity.
As such, Hong Seng intends to purchase HSF through HSGV, with the aim of obtaining ownership of the properties currently held by HSF.
