Hong Leong Industries announced that it had entered into a conditional sale and purchase agreement with Saint-Gobain Malaysia Sdn Bhd for the proposed disposal of its business, Hume Cemboard Industries Sdn Bhd.
The purchase price has been determined in accordance with the terms set out in the SPA, as an indicative price for the illustrative purpose the Sale of Shares based on the projected NAV on the completion Date is RM79.5 million. Hume has also to sell the Excluded Assets including the PJ Land and the Kanthan Land to the related corporation of the seller.
The group rationalised the decision for the disposal to realise its investment in Hume and exit its non-core fibre cement
board business. Upon completion of the proposed disposal, HLI Group plans will continue to be involved in the manufacturing, assembling, and distribution of motorcycles, scooters, and related parts and products; manufacturing and sale of ceramic tiles; and distribution and trading of marine-related products. HLI said the indicative net gain on disposal arising from the proposed disposal is approximately RM12.9 million.