HLIB sells investment holding unit to major shareholders’ firm

KUALA LUMPUR (Dec 11): Hong Leong Industries Bhd (HLI) has sold its investment holding firm HLI Trading Ltd (HLIT) to Guoline International Ltd (GIL) for US$7.78 million (RM36.22 million) in a related-party cash transaction.

“The disposal of HLIT enables HLI to streamline its offshore non-operating company," HLI said in a bourse filing on Monday. “The proceeds will be placed with financial institutions pending identification of suitable investment opportunities and expansion plans.”

HLI said its major shareholders Tan Sri Quek Leng Chan, Kwek Leng Beng and Kwek Leng Kee are also the major shareholders of GIL, which is a wholly-owned subsidiary of GuoLine Capital Assets Ltd.

The group noted that based on HLIT's audited financial statements for the financial year ended June 30, 2023, the firm's net assets amounted to RM35.68 million, while it posted a net profit of RM1.44 million.

HLI said the group's original cost of investment towards HLIT was RM6.37 million, made from June 1998 to October 2004.

Shares in HLI settled four sen or 0.43% lower at RM9.20, giving the group a market capitalisation of RM3.02 billion.