Saint-Gobain Malaysia Sdn. Bhd. entered into a conditional sale and purchase agreement to acquire Hume Cemboard Industries Sdn.

Bhd. from Hong Leong Industries Berhad (KLSE:HLIND) on June 14, 2023. The completion of the SPA is conditional on several conditions precedent being fulfilled.

The conditions precedent include the Hong Leong Industries to procure the disposal of the Excluded Assets to related corporation of the Hong Leong Industries on terms and conditions agreed by the parties. Barring any unforeseen circumstances, the transaction is expected to be completed in the second or third quarter of financial year ending June 30, 2024. The proceeds will be placed with financial institutions pending identification of suitable investment opportunities and expansion plans.

The indicative net gain on disposal arising from the deal is approximately MYR 12.9 million. The indicative consolidated EPS of Hume Cemboard is estimated to increase by approximately 4.1 sen after completion of the deal.