Hong Leong Asia’s shares closed 1.9 percent higher at S$2.65 on Monday after the company agreed to sell its building materials business to Malaysian cement maker Tasek Corp for S$323.5m in an all-share deal.
Tasek said in a filing to the Kuala Lumpur Stock Exchange that it will issue 212.2 million shares at S$1.52 each to pay for the business.
It also proposed to return to shareholders a special net interim dividend of 54 sen per share.
On completion of the deal, Hong Leong Asia will control 68.3 percent of Tasek’s enlarged share capital.
Tasek said the enlarged entity will enjoy greater synergies, maximise operational efficiency and cost savings, and give Hong Leong Asia exposure to Malaysia’s infrastructure developments, including the Iskandar Malaysia project in Johor.
It said Hong Leong Asia will apply to Malaysian regulators for a waiver from making an offer for the remaining shares it does not own.
Tasek shares closed at 4.06 ringgit prior to suspension last week.
Source : Channel NewsAsia – 28 Apr 2008