Kuala Lumpur, March 8 – Hap Seng Consolidated Bhd is selling its 100% stake in logistics service provider Hap Seng Logistics Sdn Bhd (HSL) to a unit of Hong Kong-based Lei Shing Hong Ltd for RM750mil.<\/p>\n
The diversified group, with businesses ranging from plantations to automotive, in a filing to Bursa Malaysia yesterday, said the proposed disposal was an opportunity for it to realise a substantial gain from its investment in HSL.<\/p>\n
\u201cThe proposed disposal, which translates into 2.98 times of the (implied) price-to-book ratio (PBR) (based on the unaudited financial statements of HSL as at Dec 31, 2016), is an attractive valuation and gain for Hap Seng,\u201d the company said.<\/p>\n
The sale consideration also translates into an implied price-earnings ratio (PER) of 459.47 times based on the FY16 unaudited financial statements.<\/p>\n
It said these were above the range of PBR and PER of logistics firms such as Xin Hwa Holdings bhd and Tiong Nam Logistics Holdings Bhd.<\/p>\n
It added that the sale consideration received would be used to repay borrowings and for working capital of the group.<\/p>\n
This proposed sale is deemed as a related party transaction as Tan Sri Lau Cho Kun is a 37.68% major shareholder of Lei Shing Hong Ltd and a 56% major shareholder and director of Gek Poh (Holdings) Sdn Bhd, which has a total shareholding of 61.43% in Hap Seng.<\/p>\n
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Kuala Lumpur, March 8 – Hap Seng Consolidated Bhd is selling its 100% stake in logistics service provider Hap Seng Logistics Sdn Bhd (HSL) to a unit of Hong Kong-based Lei Shing Hong Ltd for RM750mil. The diversified group, with businesses ranging from plantations to automotive, in a filing to Bursa Malaysia yesterday, said the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-205","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=205"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/205\/revisions"}],"predecessor-version":[{"id":6403,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/205\/revisions\/6403"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}