Tasek seen a stronger player with HLA’s raised stake, Malaysia

Tasek seen a stronger player with HLA’s raised stake, Malaysia
08 June 2009

Tasek Corporation Bhd has emerged a stronger player in the industry with a shot at expansion into the building material segment with the recent changes in shareholding which saw Hong Leong Asia Ltd (HLA) taking more than a 70% stake in the former.

“The acquisition creates synergistic benefits for both parties. Their combination has created the synergy whereby HLA will become stronger by having its in-house cement manufacturing arm and Tasek will be able to ride on HLA’s broad network in expanding into the building material industry,” investment adviser, iCapital, said in a recent report.

HLA, a Singaporean-based regional manufacturing and distribution group, has an integrated building material division spanning the region but lacked a cement manufacturing company. Tasek is an integrated cement manufacturer in Malaysia. HLA acquired Tasek late last year.

In April 2008, HLA had injected some S$323.5 million (RM777 million) worth of assets into Tasek in exchange for 212.249 million new shares in the company at an issue price of RM3.54 per share.

This effectively brought HLA’s direct shareholding in Tasek to 57.84% from 9.33% while its collective shareholdings with its subsidiaries increased to 68.34% from 31.92% previously.

Published under Cement News