Hap Seng buys vehicle distribution business

PETALING JAYA: Hap Seng Consolidated Bhd’s wholly owned subsidiary Hap Seng Trucks Distribution Sdn Bhd is acquiring Mercedes-Benz Malaysia Sdn Bhd’s commercial vehicle wholesale distribution business for an undisclosed amount.
The group said in a stock exchange filing that it has entered into a business transfer agreement with Mercedes-Benz for the acquisition, which will be funded through internal generated funds and/or external borrowing.
“The proposed acquisition enables the Hap Seng group to participate in the wholesale distribution of the Mercedes-Benz and Fuso commercial vehicles in the growing market in Malaysia, which will further strengthen Hap Seng group’s presence as a significant Mercedes-Benz automotive player for both passenger cars and commercial vehicles in Malaysia,” the group’s board of directors said.
The business activity of the purchase involves; imports of completely built up and completely knocked down components, assembly management, wholesale distribution; after-sales service for Mercedes-Benz and Mitsubishi Fuso branded trucks, vans and related original equipment manufacturer spare parts in Malaysia; the supply of after-sales service for Mercedes-Benz branded buses and the operations and activities of Mercedes-Benz Malaysia Commercial Vehicle Training Centre.
Hap Seng Consolidated closed 0.10% higher at RM 9.71 with some 86,900 shares done.