KUALA LUMPUR (Sept 11): Hextar Technologies Solutions Bhd (KL:HEXTECH) is in exclusive talks with Widad Group Bhd (KL:WIDAD) to dispose of five adjoining plots of vacant industrial land in Negeri Sembilan at a yet-to-be-determined price.

Widad plans to pay for the plots, if the acquisition materialises, by issuing new shares to Hextar Technologies.

Widad has entered into a heads of agreement with Hextar Technologies’ wholly owned Guper Bonded Warehouse Sdn Bhd for a three-month exclusive negotiation, based on their respective bourse filings on Wednesday.

The freehold plots, measuring 56,231 sq m, are free from encumbrances and only meant for industrial purposes (warehouse). The state authority's consent is required for any transfer, mortgage or lease of the plots.

Hextar Technologies, formerly Complete Logistics Services Bhd, said it wants to sell the land to unlock the value of its investment in the property and monetise it by selling the consideration shares to fund the expansion of its technology business.

Widad said it wants to buy the plots as it sees a strategic benefit that will allow Widad to broaden its source of cash flow and income stream, and enhance value for its shareholders by offering a stable long-term business.

Businessman Datuk Eddie Ong Choo Meng is the largest shareholder of Hextar Technologies with a 61.38% stake in the group.

Hextar Technologies’ share price slipped three sen or 2.8% to close at RM1.06 on Wednesday, bringing the group a market capitalisation of RM2.18 billion. Widad settled unchanged at 4.5 sen, valuing the group at RM139 million.