KUALA LUMPUR (Oct 12): HIL Industries Bhd has proposed to acquire a company that owns land near the Shah Alam-Klang border that has been earmarked for residential development, in a related party transaction.

The moulded plastic products maker and property developer said it is acquiring Broadwise Corporation Sdn Bhd (BCSB) via its wholly owned subsidiary, Amverton Prop Sdn Bhd, for RM46 million.

The vendors are Puan Sri Catherine Yeoh Eng Neo, Datuk Milton Norman Ng Kwee Leong and Konsep Kekal Sdn Bhd.

Yeoh is the wife of HIL Industries executive chairman Tan Sri Ng Boon Thong, who is also a major shareholder of HIL Industries and BCSB, and Milton is his son.  

Milton is also a director of Konsep Kekal, which is involved in the installation and maintenance of billboards.

BCSB's freehold land, measuring 7.4 acres, is located within the Kota Kemuning area and has a market value of RM64.2 million.

HIL Industries said it has been continuously looking out for opportunities to obtain more development land within the Klang Valley to ensure the continuous growth of its property business.

“Hence, the proposed acquisition is in line with the group’s aim to expand its property business whose focus of development is centred in Klang Valley,” it said in a filing with Bursa Malaysia on Thursday.

HIL Industries said it will fund the acquisition via internally generated funds and/or bank borrowings, noting that the group has cash and bank balances as well as fixed deposits of RM89.8 million as of the financial year ended Dec 31, 2022.

The proposed share acquisition is expected to be completed by the first quarter of next year.

HIL Industries shares finished one sen or 1.04% lower to 95 sen, giving it a market capitalisation of RM315.7 million.