KUALA LUMPUR: Hong Seng Consolidated Bhd's (HSC) wholly-owned subsidiary, HS Bio Sdn Bhd (HS Bio), recently signed a share sale agreement with Nexterra Sdn Bhd (NSB) to dispose of a 35 per cent stake in Pantasniaga Sdn Bhd (PSB) for RM24 million.
A filing with Bursa Malaysia showed that HS Bio's shareholdings in PSB will be reduced from the current 51 per cent to 16 per cent upon completion of the disposal.
The disposal is expected to generate an estimated gain of approximately RM20 million for HSC.
HSC executive director and HS Bio director Christopher Chan said the disposal is viewed as a positive move that provides a timely opportunity for HSC to immediately unlock and realise the value of the investment and assets in PSB.
"The proceeds received from the disposal could be reallocated to mainly fund HSC's existing businesses and any future prospective businesses.
"HSC's existing businesses include gloves, nitrile butadiene latex, integrated logistics services and financial services businesses," he said in a statement today.
PSB is a life science healthcare solution provider that provides quality and value-added products, services, and solutions to clients in both government and private sectors.
The company is an authorised representative and distributor for BGI Genomics Co Ltd, a leading provider of genomic sequencing and proteomic services, now serving customers in more than 66 countries.
Between 2020 to 2022, PSB had secured and fulfilled several contracts worth approximately RM200 million to supply PCR test kits for Covid-19 to the Malaysian government and related agencies.
Chan said HSC could utilise the proceeds to expand its healthcare business through other subsidiaries in providing general healthcare-related products and services post-pandemic, such as genomics and biochemistry screenings, as well as distribution of other healthcare and pharmaceutical products.
"We aim to digitalise the local healthcare industry by building a seamless ecosystem that can influence how medical services are conducted.
"HSC has expanded progressively to be one of the most comprehensive players in the domestic private healthcare sector with end-to-end medical supply chain management solutions," he said.
Chan said the healthcare business segment would continue to be an essential pillar for HSC in the coming years.