KUALA LUMPUR (Jan 19): Hai-O Enterprise Bhd has proposed a share exchange with BesHom Holdings Bhd, which will also take over the group's listing status.

Hai-O said the exercise will see its entire 300.3 million shares exchanged with BesHom shares on a one-for-one basis.

Upon the completion of the share exchange, BesHom will become the new holding company of the group. It will also assume the listing status of Hai-O on the Main Market of Bursa Securities, and Hai-O will be delisted.

The reference price of the newly listed BesHom shares on Bursa Securities will be the last closing price of Hai-O  shares on the market day prior to the suspension of trading on Bursa Securities, the group said.

In a filing with Bursa Malaysia, Hai-O also announced that through its proposed internal reorganisation, the investment holding function and the operating business will be separated.

BesHom, which will become the investment holding vehicle, will assume the multilevel marketing, manufacturing, and property holding businesses, while Hai-O will continue to operate the wholesale and retailing of herbal medicines, healthcare products, wellness and beauty products.

The group said the reorganisation will enable BesHom to achieve ease and flexibility in the expansion of new business segments or streamlining of business segments as and when the opportunities arise.

Hai-O expects the proposals to be completed by the third quarter of 2021.

Shares of Hai-O closed two sen or 0.93% higher at RM2.17, valuing the group at RM651.65 million. Over the past year, the counter has gained 7.4%, despite having surged 92% from last year's trough of RM1.13 on March 23.