As a result of the deal, Malaysian-based Tasek will become a subsidiary of HLA, which will have a 68.3 per cent stake in the firm. The Malaysian firm will pay for the assets by issuing 212.2 million new shares, representing 53.5 per cent of its enlarged share capital, to mainboard-listed HLA.

Tasek is involved in manufacturing and selling cement as well as other related products. This deal will 'consolidate the group's building materials business into Tasek', said HLA.

HLA is a group with businesses in home appliances, diesel engines, industrial packaging and building materials. It will sell its stakes in several companies, including Singapore Cement Manufacturing and Angkasa Hong Leong. The transaction will also 'eliminate any potential conflicts of interests between HLA and Tasek', HLA added.

Tasek has proposed a special net interim dividend of 54 sen per share, provided the deal is completed. It has also proposed to raise its authorised share capital from RM300 million (S$130 million) to RM1 billion.

The issue price for the shares allotted to HLA, which excludes the special dividend, was RM3.54.

The deal is subject to the approval of the Malaysian regulators and authorities.

GRACE NG