KUALA LUMPUR (Dec 15): Hiap Huat Holdings Bhd has proposed to acquire a 60% interest in petroleum products supplier KL Bunkering (M) Sdn Bhd (KLB) for a purchase consideration of RM2.1 million.

The company — which is involved in scheduled waste management, manufacture of lubricants and paint products, among others — told Bursa Malaysia on Friday that upon completion of the acquisition, KLB will become a subsidiary of the group.

“The proposed acquisition is expected to contribute positively in enhancing the group’s overall growth prospect.

“Through the acquisition of KLB, the group has the potential for a storage terminal capable of handling both import and export cargo of various petroleum and biofuel products at the port presenting a strategic competitive advantage.

“This is expected to provide versatility and to facilitate as a hub for storing and handling diverse petroleum and biofuel products, contributing to enhance logistics and supply chain operation efficiently to meet the group’s future growth,” it said.

Meanwhile, the proposed acquisition will be funded by an internal generated fund and is expected to be completed by the first half of next year.

Shares in Hiap Huat ended 0.5 sen or 3.45% lower at 14 sen, giving it a market capitalization of RM56 million.