KUALA LUMPUR: Hong Seng Consolidated Bhd (HSC) has set plans to acquire an entire stake in Premiumway Development Sdn Bhd (PDSB) for RM1.09mil.
HSC's unit Neogenix Laboratoire Sdn Bhd (Neogenix Lab) signed a shares sale agreement (SSA) with the shareholders of PDSB to acquire one million ordinary shares, or 100 per cent equity interest in PDSB.
Neogenic Lab is a wholly-owned subsidiary of HS Bio Sdn Bhd (HS Bio), which is a wholly-owned subsidiary of HSC.
Following the agreement, its healthcare arm, HS Bio, intends to acquire the properties owned by PDSB.
This will allow the company to grow and expand its healthcare operations, particularly its lab coverage and capacity to help the nation fight against Covid-19.
Hong Seng executive director and HS Bio director Christopher Chan said the acquisition aims to obtain the properties belonging to PDSB to set up HS Bio's head office following the company's progressive expansion, which requires a larger operating space.
Chan said as HS Bio continues to expand and grow its healthcare business, the company must centralise and integrate the operations of its healthcare subsidiaries at the said properties for better management and efficiency of business operations.
"At the same time, the larger space will enable the capacity expansion of the company's subsidiary, HS Cloud Lab Sdn Bhd (HS Cloud Lab), which operates a laboratory management platform offering critical logistics and supply chain solutions for reputable laboratories and clinics.
"It will also allow HS Cloud Lab to rope in industry partners who can help in the fight against Covid-19," he said.
Due to its strategic central location, HSC will also attract a talent pool from the numerous local and international universities, which are all located within a 10-kilometre radius.
In addition to its future property value, these factors will help contribute positively to the company's future earnings and financial position moving forward, it added.
HS Bio and its healthcare subsidiaries have expanded its healthcare business in providing third-party and fourth-party logistics services to the entire end-to-end healthcare supply chain.
This encompasses the front-facing and back-end processes, logistics, digital healthcare platforms, medical diagnostic and research laboratory services, and the provision of medical and healthcare supplies for both private and public sectors.