KUALA LUMPUR (June 14): Hong Leong Industries Bhd (HLI) has proposed to dispose of its wholly-owned fibre cement products manufacturing subsidiary at an indicative price of RM79.5 million.

HLI said it will secure a net gain of RM12.9 million from the sale of Hume Cemboard Industries Sdn Bhd to Saint-Gobain Malaysia Sdn Bhd at the indicative price.

The final sale price will be determined later, said the group in a bourse filing, adding that the sale is expected to be completed in the second or third quarter of the financial year ending June 30, 2024.

HLI said the disposal of Hume Cemboard — which has two plants located in Petaling Jaya and Chemor, Perak — will enable the group to exit its non-core fibre cement board business.

"The HLI group will continue to be involved in the manufacturing, assembling and distribution of motorcycles, scooters and related parts and
products; manufacturing and sale of ceramic tiles; and distribution and trading of marine-related products," it added.

HLI's share price gained three sen or 0.34% to RM8.74 on Wednesday (June 14), valuing the group at RM2.87 billion.