Hap Seng sells logistics firm for RM750 million

PETALING JAYA: Hap Seng Consolidated Bhd is disposing of the entire stake in its logistics firm for RM750 million.

In a filing with the stock exchange, the group said it had entered into a conditional share sale agreement with LSH Logistics Ltd for the disposal exercise.

Hap Seng noted that the disposal is an opportunity for the group to realise an expected gain of close to RM500 million, which will be utilised for the repayment of borrowings and working capital purposes.

Based on Hap Seng’s unaudited financial statements as at Dec 31, 2016, the disposal translates into 2.98 times of the price-to-book value ratio, which is an attractive valuation and gain for the group.