Hong Leong Asia to lose $43.5m over Chinese unit's restructure

Hong Leong Asia expects a loss of $43.5m due to the restructuring exercise of its consumer products unit Xinfei.

Due to the deal, Hong Leong Electric will transfer their equity shares in Xinfei to qualified investors, an announcement revealed.

Interested investors who qualify will have to get equity stakes through judicial auction in which the bid price will be paid to Xinfei. The minimum bid price of $92.96m (RMB450m) will close for the first round on 29 June.

Within 20 days after the closing of the auction, the qualified investors will need to pay the first instalment of the consideration with amount not less than $51.65m (RMB250m), with the balance of the consideration to be paid not within three months after the first bidding.

The firm allowed Beijing-based King & Wood Mallesons to carry out the revamping. After the transfer of equity shares, Henan will be removed as subsidiary to Hong Leong.