Hextar Technologies Solutions Bhd (Hextar) saw a 6.03% increase in its shares during mid-morning trade on Friday, following the company’s announcement of land sales to entities partly owned by its controlling shareholder Datuk Eddie Ong.
By 10:41 a.m., the stock had risen by RM1.58 to RM27.80, with 18,800 shares traded. Alongside this, Hextar proposed a 30-for-one bonus issue on Wednesday, which would expand its share capital to 3.99 billion shares.
The proposed land sales aim to generate RM78.3 million in cash for Hextar. However, the company has stated that it does not have any plans for dividend payment. In its filing with Bursa Malaysia, Hextar outlined its intention to allocate most of the proceeds, with RM68 million dedicated to expanding its technology businesses and RM8.71 million designated for working capital over the next two years.
Furthermore, SWS Capital Bhd, one of the land buyers, has revealed that it will diversify into property development and undergo a name change to Hextar Homes Bhd. SWS Capital, in which Ong holds a 13.07% stake, will acquire various parcels of land in Nilai, Pasir Gudang, and Klang, including leasehold industrial land in Pasir Gudang and vacant land in Klang.
In total, the land deals amount to RM61.61 million in cash. To finance the land purchase, SWS has proposed a renounceable rights issue, offering up to 2.38 billion new ordinary shares at an issue price of 12 sen per right share, based on a ratio of six rights shares for every one existing share. The minimum target for the proposed rights issue is to raise RM180 million.
Another buyer involved in the transactions is Hextar Holdings Sdn Bhd, which will acquire Hextar’s wholly-owned unit Channel Legion Sdn Bhd. The unit owns land in Pulau Indah, Port Klang, and Hextar Holdings will pay RM16.7 million for the takeover.
Hextar Holdings serves as Ong’s investment vehicle and holds stakes in various public-listed companies, including Hextar Industries Bhd, Hextar Global Bhd, and Pekat Group Bhd, with ownership percentages of 62.53%, 58.01%, and 20.16%, respectively.
