The proposed disposal of 50,000, 001 ordinary shares representing 100% of the issued and paid-up capital of by HS Credit (Birmingham) Ltd (HCBL) by HSC Birmingham Holdings Ltd (HSC Birmingham) , an indirect wholly-owned subsidiary of Hap Seng Consolidated Bhd (HSCB) to Lei Shing Hong Capital ( LSHCL) For RM706.701 million is Fair and Reasonable and is not detrimental to non-interested shareholders
In an Independent Advice Letter from Affin Hwang Investment Bank Bhd to non-interested shareholders, it said that accordingly, it recommends that they vote in favour of the resolution pertaining to the Proposed Disposal to be tabled at the Company’s forthcoming EGM.
Affin Hwang said that this is an is an opportunity for the HSCB to divest its credit business at an attractive valuation at the PBR of 2.5 times (based on audited NA of HCBL as at 31 December 2021) and) provide cash flow for repayment of borrowings and working capital needs of the HSCB Group.
Hap Seng also said in the circular that the part repayment of borrowings would result in an annual interest savings for the Group of approximately RM16.80 million and will enable HSCB to realise a substantial gain from the divestment of its credit business in United Kingdom.
