HLT to acquire 55pct stake in HLRI for RM33m

January 11, 2018 | By | Reply More

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KUALA LUMPUR: HLT Global Bhd is acquiring 5.78 million ordinary shares, or 55 per cent stake, in HL Rubber Industries Sdn Bhd (HLRI) from Suntel International Co Ltd, Kan Mei Yoong and Lee Sow Yin for RM33 million.

The purchase will be satisfied via the issuance of 113.79 million new ordinary sahres in HLT at an issue price of 29 sen per share, according to a filing to Bursa Malaysia today.

HLT proposes to diversify its existing fabrication business of glove-dipping lines to include the manufacturing and trading of rubber gloves as it is expected to contribute more than 25 per cent of the net profits of the HLT Group and may result in a diversion of more than 25 per cent of the net assets of the Group to an operation which differs widely from its current.

“The Board is of the view that the business of HLRI in the manufacturing and trading of rubber gloves is a complementary and synergistic business to the Group, which will enable the Group to diversify its earnings base and reduce the Group’s dependency solely on its existing fabrication business,” it said.

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