KUALA LUMPUR, March 1 — Hap Seng Consolidated Bhd is to acquire Malaysian Mosaics Sdn Bhd (MMSB) from Gek Poh (Holdings) Sdn Bhd for RM380 million.
In a filing to Bursa Malaysia today, Hap Seng Consolidated said MMSB and its subsidiaries are principally involved in the manufacturing and trading of mosaics and ceramic tiles.
“The acquisition of MMSB is an integral part of the group’s vision for the building materials business and its subsidiaries.
“Combined with MMSB, these businesses will form a leading building materials and ceramic tile group in the local, regional and overseas markets,” it added.
Hap Seng Consolidated said the purchase consideration was arrived at on a willing-buyer willing-seller basis based on the future earnings potential of the MMSB Group built on its recent turnaround.
It added that the proposed acquisition is expected to be completed by the second quarter of 2016. Meanwhile, Hap Seng Consolidated’s subsidiary, Hap Seng Star Sdn Bhd, will dispose of a 51 per cent equity interest in Hap Seng Commercial Vehicle Sdn Bhd to Lei Shing Hong Commercial Vehicles Ltd (LSHCV) for RM382.50 million.
“LSHCV has granted a put option to Hap Seng Star to sell the remaining 49 per cent or part thereof in Hap Seng Commercial Vehicle for RM367.50 million, which is exercisable after the completion of the proposed disposal,” it added.
Hap Seng Consolidated said it would use the proceeds from the proposed disposal to finance the proposed acquisition.
“In the event that the proposed disposal is delayed or aborted, Hap Seng Consolidated shall finance the proposed acquisition via internally generated funds and/or bank borrowings, the breakdown of which will be determined later,” it added.
The exercise is expected to be completed by the second quarter of 2016 while the put option could be exercised within five years from the completion date. — Bernama
