Hong Leong Asia Ltd. said on Monday it will control 68.3 percent of Malaysia’s Tasek Corp after the sale of its building materials business to the Malaysian cement firm for S$323.5m ($237.9m) in an all-share deal.
Under the conditional share and purchase deal between the two companies, Hong Leong Asia will be selling its stakes in six companies and its precast concrete and cement and granite trading business to Tasek, in exchange for about 212.2m new Tasek shares at an issue price of 3.54 ringgit per share.
"Tasek will thereby be transformed into a regional integrated building materials entity with increased scale of operations and wider geographical reach in growing regional markets like Singapore, Malaysia and Indonesia," said Hong Leong Asia in a statement.
The deal is still subject to regulatory approvals.
Hong Leong Asia, a conglomerate involved in building materials in Singapore and making diesel engines, freezers and air-conditioners in China, currently owns 31.92 per cent of Tasek.