AsiaBio Buys Two Shipping Firms
Asia Bioenergy Technologies Bhd's (AsiaBio) has signed a heads of agreement (HOA) with Hoe Leong Corp Ltd (HCL), Sumatec and Reachmont Logistics Sdn Bhd (RLSB) to facilitate the acquisition of Semua Shipping Sdn Bhd (SSSB) and Semado Maritime Sdn Bhd (SMSB) by the group.
AsiaBio has also proposed venture into the oil and gas transportation industry, will see new shareholders, including Tan Sri Halim Saad-linked Sumatec Resources Bhd, hold a collective stake of more than 20% in the technology company.
Under the HoA, SSSB and SMSB will be transferred to a special purpose vehicle (SPV). Subsequently, Asiabio will acquire the entire equity interest of the SPV by issuing shares worth RM168 million to HLCL, RLSB and Ebony Ritz Sdn Bhd (ERSB). The shares to be issued will translate to about a 20% stake in Asiabio’s enlarged shareholding, the group’s executive director Steve Tan Sik Eek said.
Tan said with the diversification, he expects the balance sheet of Asia Bio to improve and the move is part of its long term investment strategy.
