<article><a href="http://www.hapseng.com.my/" target="_blank">Hap Seng Consolidated Bhd</a> has made a voluntary partial cash offer to acquire a controlling stake (51 per cent equity interest) in Singapore-based <a href="http://www.hafary.com.sg/" target="_blank">Hafary Holdings Ltd</a>, for S$52.5 million ($39.7 million) or 24 cents per share.</article>

<a href="http://www.hapseng.com.my/" target="_blank">Hap Seng Consolidated Bhd</a> has made a voluntary partial cash offer to acquire a controlling stake (51 per cent equity interest) in Singapore-based <a href="http://www.hafary.com.sg/" target="_blank">Hafary Holdings Ltd</a>, for S$52.5 million ($39.7 million) or 24 cents per share.
The offer, done via its wholly-owned subsidiary Hap Seng Investment Holdings Pte Ltd, is for 219.58 million shares in Hafary, which has 429 million outstanding shares.
The group did not have any holdings in Hafary prior to this offer.
The offer also represents a 6.7 per cent premium, to Hafary’s current share price of 22.5 cents  yesterday. The company has a market capitalisation of S$96.53 million ($73 million).
According to the group’s filing on Bursa Malaysia, Hap Seng is seeking to acquire a controlling interest in Hafary, to facilitate regional expansion and create other synergistic benefits.
A controlling interest in Hafary would help Hap Seng develop an integrated building materials business, as Hafary is a market leader in the tiles segment, in the Singapore market. There is further growth potential, through its presence in Vietnam and China.
The group sees synergy as it is “involved in upstream segment of the building materials market while the Hafary is a strong downstream candidate, being a distributor of internationally-acclaimed brands, having a diversified customer portfolio and an established and extensive distribution network”.
Hafary is listed on the Singapore Stock Exchange. It&#8217;s subsidiaries are a leading supplier of premium tiles, stone, mosaic, wood-flooring, quartz top, sanitary ware and fittings in Singapore, Hap Seng said in its announcement.
“Leveraging on their strong sourcing and procurement network, the company carries a wide variety of surfacing materials from Europe (mainly Italy and Spain) and Asia and supply it to their customers at competitive prices.”
Hap Seng is an investment holding company with business streams in the consumer staples sector. Among its subsidiaries&#8217; businesses are oil palm and cocoa plantation, plantation supplies, commercial trailers and tankers, trading heavy equipment and automotive, agricultural fertilizer, building materials, leasing and money lending.
Hap Seng said it wishes to expand the existing business in Hafary and does not have intentions to introduce any major changes or  to re-deploy the fixed assets nor discontinue the employment of the employees of Hafary, save in the ordinary course of the business.
Hafary’s substantial shareholders Low Kok Ann, Low See Ching, Dr Audrey Low Bee Lan and Ching Chiat Kwong have given an irrevocable undertaking to it to accept the offer, said Hap Seng.
Kok Ann is the executive chairman and CEO, as well as See Ching’s (non-executive director) and Audrey’s father.

Hap Seng buys 51% in Hafary for $40m

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Hap Seng buys 51% in Hafary for $40m

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