KUALA LUMPUR (June 16): Hildrics Asia Growth Fund I’s wholly owned subsidiary HAGF Investment (I) Pte Ltd emerged as GIIB Holdings Bhd’s substantial shareholder after acquiring 48.61 million ordinary shares, or an 8.221% stake.
Hildrics Asia is a Singapore-based private equity fund managed by Hildrics Capital Pte Ltd, which was founded in 2021 by Choo Kee Siong and Wee Teng Chuen, according to a statement on Friday (June 16).
Hildrics Capital primarily focuses on direct investments into mid-sized companies with high growth prospects in Southeast Asia, it added.
“We are pleased to partner with GIIB, a leading Malaysian rubber product manufacturer with an established track record of close to 30 years and extensive presence across 60 countries, to support its next growth phase and expansion plans,” said Choo, who is also the CEO of Hildrics Capital.
The investment activity with GIIB marks Hildrics Capital’s first investment in Malaysia.
Following the investment, HAGF is now the second-largest shareholder of GIIB, after Tai Qisheng who holds an 11.45% stake, according to Bloomberg data.
Qisheng is GIIB’s executive director and the son of GIIB executive chairman and chief executive officer Tai Boon Wee.
Qisheng became the company’s biggest shareholder after his father transferred 45.81 million shares or a 7.775% stake to him via an off market transaction on June 13, 2023.
Meanwhile, Boon Wee is left with 9.6 million shares or a 1.62% stake.
“We warmly welcome Hildrics Capital as our shareholder, which is the first foreign institutional fund to invest in us. With a shared common vision and goals for the group, I look forward to working with them to scale our group to the next level,” Qisheng commented.
GIIB shares remained unchanged at 9.5 sen on Friday, valuing the company at RM56.2 million.
On Thursday, GIIB announced that Boon Wee and two other executive directors had been remanded by the MACC on May 31 for investigation of unlawful activities.
Activities that are being investigated were in relation to the issuance of invoice and proceeds banked into GIIB's account, inflation of debts of a subsidiary company in a Bursa Malaysia announcement and unauthorised payments to persons unknown.