HexTech seeks shareholder approval for RM38.14m sale of Nilai industrial land to related party
Hextar Technologies Solutions Bhd (HexTech) is asking non-interested shareholders to approve the sale of its wholly-owned subsidiary Guper Bonded Warehouse Sdn Bhd, which holds five freehold parcels in Nilai, Negeri Sembilan. The related-party transaction is expected to generate total cash proceeds
PETALING JAYA (Nov 7): Hextar Technologies Solutions Bhd (HexTech) is seeking non-interested shareholders’ approval to sell its wholly-owned subsidiary holding land in Nilai, Negeri Sembilan, in a related-party transaction expected to generate total cash proceeds of about RM38.14 million. In a circular filed with Bursa Malaysia on Friday (Nov 6), HexTech said shareholders would vote on the proposed sale of its entire equity interest in Guper Bonded Warehouse Sdn Bhd to Hextar Holdings Sdn Bhd at an extraordinary general meeting on Nov 24.
The disposal would monetise five adjoining freehold parcels acquired in 2007 for a warehouse development that did not materialise after the group shifted its business focus towards technology in 2021. The conditional share sale agreement was signed on Aug 6, with completion tentatively scheduled for December 2026, subject to relevant approvals.
The transaction carries a cash consideration of RM2.77 million for the subsidiary’s ordinary shares. HexTech also expects to receive RM35.05 million from the redemption of redeemable convertible preference shares it holds in the subsidiary, and an illustrative RM318,000 repayment of intercompany advances. Hextar Holdings will advance funds to Guper Bonded Warehouse to facilitate the redemption and repayment.
Guper Bonded Warehouse’s principal assets are five parcels within Nilai Industrial Estate, measuring 56,231 sq m (approximately 605,265 sq ft, or 13.9 acres). They comprise Lots 60584 to 60588 in Bandar Nilai Utama, Seremban district. The titles restrict the land’s use to industrial warehousing, while the valuation certificate states that the properties are commercially zoned. According to the circular, no development order had been approved by the local council and there were no proposed development plans as at the valuation date.
Independent valuer Laurelcap Sdn Bhd valued the properties at RM38.50 million as at June 24, 2026. Their carrying value in HexTech’s audited consolidated financial statements for the financial year ended March 31, 2026 was about RM6.01 million. HexTech expects a pro forma disposal gain of approximately RM31.59 million and said the proceeds would strengthen liquidity and provide greater financial flexibility.
The disposal is deemed a related-party transaction in view of the interests of group chief executive officer and executive director Datuk Ong Choo Meng and the interested shareholders. Ong is also a director of Hextar Holdings and holds a 64.73% direct stake in the purchaser. HexTech said Ong had abstained and would continue to abstain from board deliberations and voting on the proposal. Independent adviser Eco Asia Capital Advisory Sdn Bhd considers the proposed disposal fair and reasonable and not detrimental to non-interested shareholders, and recommends that they vote in favour.
