KUALA LUMPUR: Hong Seng Consolidated Bhd
has proposed to acquire Alliance EV Sdn Bhd (AEV), the electric vehicle (EV) business arm of CSH Alliance Bhd for RM20mil.
In a filing with Bursa Malaysia, Hong Seng said it entered into a shares sale agreement (SSA) with CSH to undertake the proposed acquisition of five million ordinary shares in AEV, representing the entire issued share capital in AEV.
The group said the acquisition complemented its recent collaboration with EoCell Inc (USA) in manufacturing EV batteries.
Hong Seng had previously announced that it entered into a memorandum of understanding (MoU) with EoCell. The MoU outlined both parties’ intention to build and create a regional manufacturing hub in Malaysia to manufacture batteries for EV and progress to other power storage solutions for EV and to supply to EV manufacturers, assemblers, users in the Southeast Asian region (Project Volt).
On the other hand, AEV is also currently in collaboration with BYD Malaysia Sdn Bhd (the Malaysian arm of BYD Company Limited) whereby the parties intend to work together in the business of distribution of the BYD T3 commercial electric van (BYD T3 EV) model (a pure electric logistics vehicle with low energy consumption and high
performance) as well as to set up a 4S service centre to provide the related after-sales services and a local assembly plant for the said model on the Tanjung Malim Land (Project EV).
Hong Seng said AEV would become a wholly-owned subsidiary of the group upon the completion of the acquisition.
“The proposed acquisition is viewed positively to provide a timely opportunity for Hong Seng to acquire the Tanjung Malim Land and the EV distribution and manufacturing businesses of AEV for the benefit of Project Volt as well as to complement the group’s venture into EV battery
manufacturing business.
“This will enable the group to emerge as an integrated player by venturing into both the upstream and downstream segments of the EV supply chain with the synergies created from both Project Volt and Project EV,” it said.
