PETALING JAYA: HLT Global Bhd, which was listed in January 2017, proposes a variation to its initial public offering (IPO) proceeds to upgrade its eight glove-dipping lines and set up a new line, which are in line with its plans to diversify into the downstream glove manufacturing business. Today, HLT also signed a conditional sale of shares agreement with Suntel International Co Ltd, AXG Capital Sdn Bhd and Lee Sow Yin for the acquisition of a 55% stake in HL Rubber Industries Sdn Bhd (HLRI) for RM33 million, to be satisfied via the issuance of 113.79 million new shares at an issue price of 29 sen per share. This follows a heads of agreement that was entered two weeks ago. In view of the proposed diversification and acquisition, HLT decided to defer the acquisition of land and factory construction and use the unutilised balance of about RM10.5 million from its IPO, for the upgrade of its glove-dipping lines. Through the proposed acquisition, HLT would be able to integrate its existing business in the fabrication of glove-dipping lines with the downstream business operations of HLRI in the manufacturing and trading of rubber gloves. “This is consistent with the group’s plan to diversify its revenue and income stream so as to mitigate the risk of overdependence on its existing fabrication business.” Barring any unforeseen circumstances, HLT said the proposed diversification is expected to contribute more than 25% of its net profits and may result in a diversion of more than 25% of the group’s net assets to the manufacturing and trading of rubber gloves. Its share price fell 1.8% to close at 28 sen today on some 132,600 shares done.