Friday 24 May 2024
By
main news image

KUALA LUMPUR (Jan 23): Hextar Capital Bhd's (HexCap) plans to dispose of its 40% stakes in Unigel (UK) Ltd and Unigel IP Ltd as the group is looking to refocus its resources on its fibre optic cables and cable-related products manufacturing activities, while diversifying into the power generation and transmission businesses.

The group said its wholly-owned unit, Unigel Compounds Sdn Bhd, will sell its 40% stake in Unigel (UK) to Unigel Technologies Ltd for £1.3 million (RM7.6 million) and its 40% stake in Unigel IP to Unigel Ltd for £400,000 (RM2.34 million).

Unigel (UK) is principally involved in manufacturing cable filing and flooding compounds, while Unigel IP is mainly involved in the provision of licensing services for intellectual property rights.

The proceeds from the proposed disposals will be utilised to fund its existing and future contracts, potential future acquisitions and investments as well as for its working capital requirements, said HexCap, formerly known as Opcom Holdings Bhd.

"HexCap’s proposed disposal of Unigel (UK) Ltd and Unigel IP Ltd will be a milestone in its transformation plan to reinvest and refocus its resources on its existing core businesses as well as new businesses which will provide HexCap with a stream of recurring profit.

"This exit is timely as the group had recently obtained shareholders’ approval to diversify into the power generation and transmission businesses," HexCap said in a statement on Tuesday.

HexCap managing director Johnson Chang said the group will continue to look for opportunities to complement its core business activities in the manufacturing of fibre optic cables and cable-related products as well as the provision of telecommunication network infrastructure solutions, power generation and transmission businesses.

"HexCap will also endeavor to identify other opportunities to further diversify its income base," he added.

Shares of HexCap closed up one sen or 1.98% at 51.5 sen on Tuesday, valuing the company at RM228.42 million.

Edited ByS Kanagaraju
      Print
      Text Size
      Share