KUALA LUMPUR: Shares of HONG LEONG INDUSTRIES BHD [] and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) rose in afternoon trade on Thursday, Nov 18 after HL Industries announced a corporate exercise.

At 2.55pm, HL Industries was up 25 sen to RM5.45 with 199,200 shares done and MPI added 10 sen to RM5.85.

The stocks bucked the cautious market where the FBM KLCI fell 10.02 points to 1,493.52. Turnover was 669.68 million shares done valued at RM975.1 million. There were 297 gainers, 371 losers and 286 stocks unchanged.

HLIndustries Bhd is acquiring all of Hume Industries (Malaysia) Sdn Bhd (HLMG) for RM235.2 million from Hong Leong Manufacturing Group Sdn Bhd via the issuance of 46.759 million new shares.

It also signed an agreement with Hume Cement Sdn Bhd and HLMG to subscribe up to 175 million six-year 2% non-cumulative irredeemable convertible preference shares at the par value of RM1 each to be satisfied by cash.

HL Industries would then undertake a rights issue of up to 159.736 million new shares on the basis of one rights share for every 2 shares held at an indicative issue price of RM1.45 per rights share.

HL Industries proposed to distribute up to 119.80 million shares in MPI to the HL Industries shareholders on the basis of 75 MPI shares for every 300 HL Industries shares held.