KUALA LUMPUR (Jan 17): HIL Industries Bhd is buying two firms, which have obtained regulatory approval for two projects worth an estimated RM375.24 million in gross development value (GDV), from its major shareholders for RM71 million.
The proposed buys are in line with its business strategy to expand its property division and reduce reliance on its manufacturing segment, it said in a bourse filing.
The firms it is buying are A&M Concrete Products Sdn Bhd and Show Piece Sdn Bhd. It inked two separate agreements for the proposed buys yesterday, via its wholly-owned unit AMJ Construction Sdn Bhd.
It is buying a 99% stake in A&M Concrete for RM22 million from Steven Junior Ng Kwee Leng and Malcolm Jeremy Ng Kwee Seng. It is buying the entire equity interest in Show Piece for RM49 million from Tan Sri Ng Boon Tong and Datuk Milton Norman Ng Kwee Leong. All four are major shareholders of HIL Industries, in which Boon Tong, Kwee Leong and Kwee Seng are also directors.
A&M Concrete owns a freehold plot in Klang that has been approved for an apartment project with nine stratified three-storey shops. Known as the Bukit Kemuning Land, the project’s GDV is RM178.64 million, with an estimated gross development cost of RM131.74 million. The development is expected to be launched in the second quarter of 2017.
Show Piece owns Innocentral Sdn Bhd, which owns 318 house plots in Klang known as Sungai Jati Land I, which has also obtained approvals for development. It also owns a parcel of vacant residential land called Sungai Jati Land II.
This article first appeared in The Edge Financial Daily, on Jan 17, 2017. Subscribe to The Edge Financial Daily here.