Tong Herr buys 15.58% stake in Taiwan stainless steel casting maker

-A +A

KUALA LUMPUR (Nov 23): Tong Herr Resources Bhd’s subsidiary has bought a 15.58%  stake in Taiwanese stainless steel precision casting maker and trader Han Tec Precision Industry Co Ltd (HTPI) for NT$60 million (RM8.22 million).

“The acquisition enables Tong Herr to diverge into a different business opportunity while remaining on the group’s similar business core which is stainless steel products,” the group said in a filing with Bursa Malaysia today.

Tong Herr said its 51%-owned subsidiary, Tong Herr Aluminium Industries Sdn Bhd, acquired six million shares in HTPI, which is subject to the final approval of Taiwan’s Taoyuan City Government.

Following the acquisition, HTPI becomes 15.58% owned by Tong Herr Aluminium while Tong Herr effectively holds 7.95% equity interest in HTPI.

Tong Herr said the acquisition was financed from internally-generated funds.

Its shares fell 10 sen or 2.63% to close at RM3.70 for a market capitalisation of RM572.16 million.