Hong Seng Consolidated Bhd’s (Hong Seng) healthcare arm HS Bio Sdn Bhd (HS Bio) has entered into a shares sale agreement (SSA) with the shareholders of Premiumway Development Sdn Bhd (PDSB) to undertake a proposed acquisition of 100 per cent equity interest for a total purchase consideration of RM1.09 million through its wholly-owned subsidiary NeoGenix Laboratoire Sdn Bhd (NeoGenix Lab).
Pursuant to the SSA, HS Bio intends to acquire the properties owned by PDSB to allow HS Bio to grow and expand its healthcare operations in particularly its lab coverage and capacity to help the nation fight against Covid-19.
PDSB is the registered proprietor and beneficial owner of two units of industrial properties located at Section 51, Petaling Jaya, comprising a single-storey detached factory with an annexed 4-storey office block with total built up area of 33,500 square feet (sq ft), and a single-storey detached office warehouse with an annexed two-storey office block with total built up area of 9,272 sq ft.
Hong Seng executive director and HS Bio director Christopher Chan said: “The proposed acquisition is aimed at obtaining the properties belonging to PDSB for the purpose of setting up HS Bio’s head office following the Group’s progressive expansion which requires a larger operating space.
“As HS Bio continues to expand and grow its healthcare business, it is crucial for us to centralise and integrate the operations of our healthcare subsidiaries at the said properties for better management and efficiency of business operations.
“At the same time, the larger space will enable the capacity expansion of the Group’s whollyowned subsidiary, HS Cloud Lab Sdn Bhd (HS Cloud Lab) which operates a laboratory management platform offering critical logistics and supply chain solutions for reputable laboratories and clinics.
“It will also allow HS Cloud Lab to rope in industry partners which can help in the fight against Covid-19. We have been warned that there is a high possibility of a new wave starting in Malaysia, so we believe that it is time for industry players to not look at each other as competitors but teammates as we can help the country better if only all the industry players work together closely to deploy their respective strengths.”
Due to its strategic central location, the group reckons that it will also be able to attract a talent pool from the numerous local and international universities which are all located within a 10km radius. These factors in addition to its future property value will help contribute positively to the Group’s future earnings and financial position moving forward.
HS Bio and its healthcare subsidiaries has expanded its healthcare business from providing third party and fourth party logistics services to entire end-to-end healthcare supply chain.
This encompasses the frontfacing and back-end processes, logistics, digital healthcare platforms, medical diagnostic and research laboratory services as well as the provision of medical and healthcare supplies for both private and public sectors.