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Malaysia's Hing Yiap to buy six firms of Asia Brands
16
Jul '12
Hing Yiap Group Bhd, Malaysian apparel trader and retailer, is set to procure six subsidiary companies of Asia Brands Corp Bhd for a price of RM 245 million.
 
The six firms are Asia Brands Global Sdn Bhd, Anakku Sdn Bhd, Asia Brands Assets Management Sdn Bhd, Audrey Sdn Bhd, Asia Brands HR Services Sdn Bhd and Mickey Junior Sdn Bhd.
 
According to a conditional sale agreement signed between Hing Yiap and Asia Brands, Hing Yiap would pay a sum of RM 179.3 million in cash, and issue 30,137.615 new shares of RM 1.00 each, at an issue price of RM 2.18 per share, to raise another RM 65.7 million for purchase of the six firms.
 
The main idea behind acquisition of subsidiaries of Asia Brands Corp is that their firm is also in the same apparel trading and retailing business as Asia Brands, said Hing Yiap in a filing to Bursa Malaysia.
 
The said acquisitions would positively impact Hing Yiap’s performance, as the enlarged company would benefit from a wider consumer network, consolidated operations and reduction in duplication of resources within the consolidated firm.
 
Also, this would enhance the efficiency and effectiveness of the company’s marketing and distribution networks.
 
The procurement would also allow Hing Yiap to establish a strong presence in the babies and children’s wear product market, as home-grown brand Anakku, one of the entity proposed to be acquired, marks a strong presence in Malaysia for over three decades.
 
The deal would also open ways for Hing Yiap Group to expand its operations to include marketing and distribution of women’s intimate apparels through home-grown brand Audrey, also in the proposed list of acquisition.
 

Fibre2fashion News Desk - India

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