Malaysia: Narra Industries to buy preference share in Hume Cement

Malaysia: Narra Industries to buy preference share in Hume Cement

Narra Industries Bhd, which is primarily an investment holding company for furniture and previously fibre cement, has won shareholder approval to diversify its business portfolio with new cement assets. The company will acquire concrete and cement assets from its sister companies under the Hong Leong Group.

According to a filing with Bursa Malaysia, the vote was 99.08 per cent  in favour for the resolution of acquiring Hume Industries (Malaysia) Sdn Bhd, Hume Cement Sdn Bhd (HCement) and irredeemable convertible preference shares of HCement for MYR448m (US$139m), to be satisfied with the issuance of new Narra shares. However, the turnout of shareholders present at the EGM yesterday was said to be low.

A shareholder told SunBiz that the resolution was easily passed, as shareholders did not raise any questions on the acquisition plans. "The EGM went smoothly without any interruption, all are happy with the results," he said.

The shareholder expects Narra will achieve better financial performance following its more diversified business portfolio. "We hope to see improved earnings after the company gets into the concrete and cement business," he added.

Narra, a company controlled by tycoon Tan Sri Quek Leng Chan, posted a net loss of MYR4.05m for the nine-month period ended 31 March 2014.

Bursa Malaysia on Monday issued an unusual market activity query on Narra, which saw its share price surge as much as 62 sen or 29.81 per cent, hitting the 30 per cent limit-up level.

The firm then said it was unaware of any reason for the spike in its share price. Narra's share price went up five sen to close at MYR2.44 yesterday, with only 761,000 shares traded.