Hong Seng Consolidated Berhad has proposed to acquire the remaining 40% stake in Neogenix Laboratoire Sdn Bhd (“Neogenix Lab”) for RM3.4 million in view of its growth potential.
According to a filing with Bursa Malaysia, HS Bio Sdn Bhd, a wholly-owned subsidiary of Hong Seng, has entered into a shares sale agreement with Dr. Kuan Chee Sian and Joveen Neoh Wan Fen, to acquire 80,000 ordinary shares in Neogenix Lab, representing 40% of the equity interest in Neogenix Lab.
The proposed acquisition will be fully satisfied in cash via internally generated funds after which upon completion of the SSA Neogenix Lab will become a wholly-owned subsidiary of Hong Seng.
Executive Director Christopher Chan noted that the group believes that the proposed acquisition will be profitable as it has been helping the business grow with its current presence in Klang Valley, the Northern region, Sabah and Sarawak.
According to Chan, the proposed acquisition of Neogenix Lab allows the Group to have full control and reap the benefits of additional future profits in view of its growth potential.
Another key aspect of the SSA includes the retainment of key strategic leadership at Neogenix Lab such as Dr Kuan and Joveen, the founders of Neogenix Lab, who will remain with the Group and spearhead the division’s business and operations.
