Halex proposes to acquire 50% stake in Kensington Development for RM32 mil

KUALA LUMPUR (Oct 1): Halex Holdings Bhd has proposed to acquire another 50% stake in property development outfit Kensington Development Sdn Bhd for RM32 million, bumping up its shareholdings in Kensington to 75%.

In an announcement today with Bursa Malaysia, Halex said it had accepted a conditional offer from Bestempire Ltd, which intended to sell its 2.5 million shares or 50% stake in Kensington Development Sdn Bhd for RM32 million cash.

Halex Realty, a wholly-owned subsidiary of Halex, presently holds 25% equity interest in Kensington. Upon the acquisition from Bestempire, its shareholdings will increase to 75%.

“As a result, Kensington would turn from being an associate company of Halex Realty to its subsidiary company of which the financial results of Kensington will be consolidated into the financial statements of Halex,” said the group.

The acquisition of the 50% stake is subject to the approval of the shareholders of Halex, as well as for the diversification of the business carried out by Halex and its group of companies, which would be obtained in an extraordinary general meeting.

“A formal sales and purchase agreement will be finalised and executed upon the satisfaction of the offer condition, within four months from the date of the acceptance of the offer,” said Halex.

Halex is involved in manufacturing and distribution of healthcare disposable products. It climbed 1.89% to close at 81 sen today, with a market capitalisation of RM85.84 million.