KUALA LUMPUR, July 12 — Hap Seng Consolidated Bhd (HSCB) has proposed to dispose of its entire equity interest in Richmore Development Sdn Bhd to Gek Poh (Holdings) Sdn Bhd for RM51 million.

The shares are currently owned by Hap Seng Hospitality Sdn Bhd (HS Hospitality) and Hap Seng Land Development Sdn Bhd (HSLD), both indirect wholly-owned subsidiaries of HSCB, the diversified conglomerate said in a filing with Bursa Malaysia today.

HSCB also said that HS Hospitality and HSLD have inked a share sale agreement with Gek Poh for the proposed disposal and upon the completion, Richmore would become the later’s wholly-owned subsidiary.

"Accordingly, Richmore’s liabilities amounting to RM212.5 million will be deconsolidated from the HSCB Group and Gek Poh will be the new guarantor for Richmore’s bank borrowings,” it said.

HSCB also said the exercise would streamline and balance the group’s portfolio mix between property development and property investment. — Bernama