Hextar Capital Bhd (HexCap), announced that its wholly-owned unit, Unigel Compounds Sdn Bhd, is selling 40% of its stake for each of two entities to Unigel Limited for GBP1.7 million (equivalent to approximately RM10.22 million).
In a statement, HexCap said its unit will dispose its 40% stake in both Unigel (UK) Limited to Unigel Technologies Limited (Unigel UK) for BP1.30 million (equivalent to approximately RM7.60 million) and Unigel IP Limited for a cash consideration of GBP0.40 million (equivalent to approximately RM2.34 million).
Incorporated in England and Wales, Unigel UK is principally involved in the manufacturing and sale of cable filing and flooding compounds as well as associated pumping and delivery equipment.
Meanwhile, Unigel IP Limited, which was incorporated in Hong Kong, is principally involved in the provision of licensing services for intellectual property rights.
“The proposed disposals will enable HexCap to raise proceeds of approximately RM9.94 million to be utilised to fund its existing and future contracts, potential future acquisitions or investments as well as for its working capital requirements.
“It is further expected to contribute to the future income of the group and to finance its working capital requirements without relying solely on internally generated funds,” it said.
HexCap, formerly known as Opcom Holdings Bhd, said the proposed disposal of Unigel (UK) Limited and Unigel IP Limited will be a milestone in its transformation plan to reinvest and refocus its resources on its existing core businesses.
“(It will be used for) new businesses which will provide the group with a stream of recurring profit. This exit is timely as the group had recently obtained shareholders’ approval to diversify into the power generation and transmission businesses,” it added.
HexCap managing director Johnson Chang said HexCap will continue to look for opportunities to complement its core business activities in the manufacturing of fiber optic cables and the provision of telecommunication network infrastructure solutions, among others.
“We will also endeavor to identify other opportunities to further diversify its income base,” he said.
Chang added: “The group is also proposing a private placement representing not more than 30% of the total number of issued shares of HexCap at an issue price to be determined and fixed at a later date.
“The proceeds from the proposed private placement will enable the group to raise funds more expeditiously and in a more cost-effective manner, and strengthen its financial position.”
