PETALING JAYA: Hong Seng Consolidated Bhd today entered into a share sale agreement with MMAG Holdings Bhdâs wholly owned subsidiary United ICT Consortium Sdn Bhd for the proposed acquisition of a 49% stake in HS Bio Supplies Sdn Bhd for RM980,001 cash.
MMAG was a major shareholder of Hong Seng prior to the disposal of all of its shareholdings in the company on Aug 4. As MMAGâs cessation of being a major shareholder of the company is within six months, MMAG is still deemed as a major shareholder of the company.
HS Bio will become a wholly-owned subsidiary of the company on the completion of the sale and purchase of the sale shares.
HS Bio is currently engaged in the business of providing pharmaceutical, medical and healthcare supplies such as medicine, medical consumables, bio supplies, medical equipment or devices, test-kits, vaccines, supplements and other medical and healthcare related products as well as healthcare related services in addition to the supply chain management services for the healthcare industry.
Notwithstanding that MMAG (via United ICT) will cease to be an ultimate shareholder of HS Bio upon the completion of the proposed acquisition, MMAG Group will still be working closely with HS Bio to support it in its healthcare related business, particularly to assist in its third and fourth party logistics services.
âThe proposed acquisition is viewed positively for the company to increase its stake in HS Bio to have full control over HS Bioâs management and operations. The company expects that the proposed acquisition will enable the group to reap the full benefits of all future revenue and profits derived from HS Bioâs healthcare-related business,â Hong Seng said.
The board envisages that the proposed acquisition is expected to contribute positively to the overall future earnings as well as the earnings per share of Hong Seng Group as and when the potential benefits from HS Bioâs healthcare related business is materialised.
It expects the exercise to be completed by end of October 2020.
