KUALA LUMPUR: HIL Industries Bhd is expanding its presence in Malaysia's property market by acquiring a company in a related party transaction.
The manufacturer of moulded plastic products and property developer said that it is constantly looking for opportunities to acquire more development land within the Klang Valley to ensure the continued growth of its property business.
HIL Industries is not a newcomer to the real estate market. In order to grow and diversify its earnings base, the company ventured into property development through its subsidiaries.
Kemuning Hijauan 3 in Bukit Kemuning is one of the company's property projects.
Amverton Greens at Bukit Kemuning Golf and Country Resort and Amverton Links at Jalan Sungai Jati, Klang, were both launched in 2018.
According to the company's website, it will continue to expand its property business, with a particular emphasis on affordable housing. Its development will be concentrated in the Klang Valley, particularly in the Kota Kemuning area.
HIL Industries told the stock exchange yesterday that it has proposed acquiring Broadwise Corporation Sdn Bhd (BCSB) for RM46 million through its wholly owned subsidiary, Amverton Prop Sdn Bhd.
Puan Sri Catherine Yeoh Eng Neo, Datuk Milton Norman Ng Kwee Leong, and Konsep Kekal Sdn Bhd are the vendors.
The transaction is considered a related party transaction because Yeoh is the wife of HIL Industries executive chairman Tan Sri Ng Boon Thong, who is also a major shareholder in HIL Industries and BCSB, and Milton is his son.
Milton is also a director of Konsep Kekal, a company that installs and maintains billboards.
BCSB owns land near the Shah Alam-Klang border zoned for residential development.
According to HIL Industries, BCSB's freehold land, measuring 7.4 acres, is located in the Kota Kemuning area and is worth RM64.2 million.
The proposed acquisition, according to the company, is in line with its goal of expanding its property business, with a development focus in the Klang Valley.
HIL Industries said that it will fund the acquisition with internal funds and/or bank borrowings.
As of the end of the fiscal year on December 31, 2022, the company had RM89.8 million in cash and bank balances, as well as fixed deposits.
The proposed share purchase is expected to conclude in the first quarter of next year.