Hong Seng Consolidated Bhd has entered into a share sale agreement with Robust Potential Sdn Bhd to sell its equity interest in Hong Seng Priority Management Sdn Bhd (HSPM).
The equity interest sale agreement is expected to involve a sale rate of 100% worth RM34.5 million.
Meanwhile, Hong Seng announced that the sale of two million ordinary shares in the hire purchase business would bring in an estimated profit of RM31.20 million.
Group Managing Director Datuk Seri Teoh Hai Hin said the proceeds from the sale would be used as working capital for a more strategic healthcare and gloves business.
Monitoring the statement issued on Friday, he was very happy and proud to have successfully developed HSPM into a profitable business.
However, following the prospects and future profit potential of HSPM where it requires large working capital to reap the benefits of lucrative profits.
The sale executed is also a very appropriate opportunity to sell at a profit rate that is seen as positive for the company, he added.
The move enables the company to benefit and realize the value of investments and assets in HSPM immediately.
On August 16, it signed a cooperation agreement with Sino EV Assembly Sdn Bhd to forge cooperation in the electric vehicle business in Malaysia for a period of five years.
As at 10.33am, the share price had jumped 0.96% to RM2.11 with a market capitalization of RM5.39 billion.
