Hong Seng sells 32.6% stake in Classita to NexG for RM60.3mil
Classita and its subsidiaries are principally engaged in the manufacturing and sales of undergarments, property development and construction as well as direct selling and retailing of its in-house brands.
In a filing with Bursa Malaysia, Hong Seng noted the proceeds from the disposal will be utilised for the working capital purposes.
Hong Seng added that the sale is in line with its strategic initiative to streamline non-core assets and focus on its main business segments: gloves manufacturing, seafood trading and financial services.
The stake in Classita was acquired in July 2023 and the sale provides an opportunity to realise an estimated gain on disposal of RM34.52mil.
In a separate filing, Classita had announced resignations and appointments to its board following the transaction in its shares ownership.
Meanwhile, NexG noted it has spent another RM16.47mil to buy 414.3 million warrants in Classita from various non related parties.
The company added it will fund the deal with RM40mil from short-term borrowings and the RM36.78mil from internally generated funds.
It added the acquisition in Classita is a strategic opportunity to expand into the property and construction sector. The deal does not require the approval of shareholders of NexG.
NexG executive chairman and CEO Datuk Hanifah Noordin said: "We are excited to announce this strategic acquisition, which forms part of our broader strategy to support government initiatives and to contribute directly to nation-building efforts under the MADANI Economic Framework, while also expanding beyond our businesses in secure identity solutions, digital trust ID, corporate strategic alliance and financial services.'
'Entering the property and construction sectors is a strategic and timely move for NexG. We intend to play a more active and visible role in Malaysia's national development by leveraging our financial strength, government networks, and proven track record in mission-critical projects to support the country's housing and infrastructure agenda.
'We view Classita as a strong fit for this ambition, given its credentials and readiness to participate in government-linked projects,' he said.
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Hong Seng sells 32.6% stake in Classita to NexG for RM60.3mil
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