KUALA LUMPUR: Hap Seng Consolidated Bhd
(HSCB) has proposed to dispose of its entire equity interest in Richmore Development Sdn Bhd to Gek Poh (Holdings) Sdn Bhd for RM51mil.
In a filing with Bursa Malaysia, the group said Hap Seng Hospitality Sdn Bhd (HS Hospitality) and Hap Seng Land Development Sdn Bhd (HSLD), both indirect wholly-owned subsidiaries of HSCB had entered into a shares sale agreement with Gek Poh for the proposed disposal of 50.5 million ordinary shares, representing 100% stake in Richmore.
Upon the completion of the proposed disposal, Richmore will become a wholly-owned subsidiary of Gek Poh.
"Accordingly, Richmore’s liabilities amounting to RM212.5mil will be deconsolidated from the HSCB Group and Gek Poh will be the new guarantor for Richmore’s bank borrowings,” it said.
HSCB also said the proposed disposal would streamline and balance the group’s portfolio mix between property development and property investment.
It added that the exercise would also strengthen its financial position by deconsolidating Richmore’s borrowings of RM202mil as at June 30, 2023 from the HSCB Group.
Save 30% for ads-free and full access now!
