Hong Seng, through its official statement, made the announcement on a Proposed Disposal. Its wholly-owned subsidiary, HS Bio had on 24 June 2022, entered into a Shares Sale Agreement with Nexterra for the disposal of 35,000 ordinary shares or 35% equity interests in Pantasniaga for a total cash consideration of RM24 million (Proposed Disposal).
A filing with Bursa Malaysia showed that HS Bio’s shareholdings in Pantasniaga will be reduced from the current 51% to 16% upon completion of the Proposed Disposal.
The Proposed Disposal is expected to generate an estimated gain of approximately RM20 million to the Group. It is viewed as a timely opportunity to realise the immediate gain in which the proceeds could be utilised to fund the Group’s existing businesses and/or any furture prospective businesses.
Pantasniaga is a life science healthcare solution provider that provides quality and value-added products, services, and solutions to clients in both government and private sectors. The company is an authorised representative and distributor for BGI Genomics Co., Ltd., the provider of genomic sequencing and proteomic services, now serving customers in more than 66 countries.
During the year 2020 to 2022, Pantasniaga had secured and fulfilled several contracts worth approximately RM200 million to supply PCR test kits for Covid-19 to the Malaysian Government and/or its related agencies.
“The Proposed Disposal is viewed as a positive move that provides a timely opportunity for the Group to immediately unlock and realise the value of the investment and assets in Pantasniaga. The proceeds received from the said disposal could be
reallocated to mainly fund the Group’s existing businesses and/or any future prospective businesses. The Group’s existing businesses include gloves, nitrile butadiene latex, integrated logistics services and financial services businesses,” Hong Seng Executive Director and HS Bio Director Christopher Chan commented on the disposal.
“The Group could utilise the said proceeds to expand its healthcare business through other subsidiaries in providing general healthcare-related products and services post-pandemic such as genomics and biochemistry screenings as well as distribution of other healthcare and pharmaceutical products,” he added.
“We aim to digitalise the local healthcare industry by building a seamless ecosystem that can influence the way medical services are being conducted. The Group has expanded progressively to be one of the most comprehensive players in the Malaysian private healthcare sector with end-to-end medical supply chain management solutions,” he said.
He reckoned that healthcare will continue to be an important pillar for Hong Seng in the coming years.