Hong Leong Industries in corporate restructuring

Hong Leong Industries in corporate restructuring
25 September 2013

Hong Leong Industries Bhd (HLI) is selling its 100 per cent stake in Hume Industries (Malaysia) Sdn Bhd for MYR48m (US$14.9m) and preference shares in Hume Cement Sdn Bhd for MYR300m (US$93m) to Narra Industries as part of a corporate restructuring exercise.

The move of both companies, which each come under the Hong Leong Group, would see the disposals of the 300 million Hume Industries shares and entire 175,000,000 six-year two per cent non-cumulative irredeemable convertible preference shares of MYR1 each in Hume Cement, in exchange for new Narra Industries shares.

"The proposed disposals will allow HLI to realise its investments in the Hume Cement ICPS and the concrete business division in a manner favourable to the shareholders of Hong Leong Industries," HLI said on Thursday.

HLI said the Hume Cement ICPS currently held by HLI is only convertible into new ordinary shares in Hume Cement after March 2017.

"The proposed disposal of Hume Cement ICPS will accelerate the participation of HLI's shareholders in Hume Cement," it said.

Hume Industries is the latest entrant on the Malaysian cement market, having recently launched a 1.5Mta cement plant in Lembah Kinta, Perak.

Published under Cement News