KUALA LUMPUR (Jan 11): HLT Global Bhd has proposed to acquire the remaining 45% stake in its 55%-owned rubber glove subsidiary for RM90 million.
In a bourse filing, the group said plans to acquire the stake in HL Rubber Industries Sdn Bhd (HLRI) via the issuance of 90 million new HLT shares at RM1 per share.
The vendors of the stake are Suntel International Co Ltd, Hup Lek Engineering & Trading Sdn Bhd, Teng Kok Fah and Lau Siong Hut.
HLT said it decided to raise its stake in HLRI given the favourable prospects of the rubber glove industry.
"Through the proposed acquisition, HLT will be able to have full control over HLRI, in terms of absolute shareholding as well as its overall operations and future business direction," the group said.
HLT said that for the 10 months ended Oct 31, 2020, HLRI recorded a profit after tax of RM32.58 million, on revenue of RM125.32 million.
The group said that upon the issuance of the new HLT shares, its share capital would increase to as much as 814.6 million shares, from 706.58 million shares currently.
The deal is expected to be completed in the first quarter of 2021, it added.
Shares in HLT finished 6.76% or 10 sen lower at RM1.38, valuing the group at RM850.91 million. The counter saw 138.34 million shares traded.