SGX-listed Eneco Energy to secure a stake in the Hoe Heng Group of Companies

EEL entered into deals to secure a 48% stake in HHPL.

Eneco Energy Limited (EEL) declared that its wholly-owned subsidiary, Eneco Singapore, entered into two shares sale and purchase agreements to secure a stake in the Hoe Heng Group of Companies.

Specifically, EEL said it seeks to secure a 48% stake in Ho Heng Private Limited and 60% in Hoe Heng Industrial Engineering Sdn. Bhd. The total amount of $9.6m would be satisfied by $9.026m in cash and $600,000 by issuing 30 million new ordinary shares of the company at a price of $0.02.

The Hoe Heng Group of Companies “carry on the business of manufacturing motor vehicle bodies (coachwork), trailers and semi-trailers, installation of industrial machinery and equipment, mechanical engineering works, repair and maintenance of motor vehicles and manufacturing of chassis platforms.” 

The proposed acquisition is subject to several conditions including the approval of shareholders of the Company at an extraordinary general meeting to be convened and the approval of the Singapore Exchange Securities Trading Limited.

Ngo Yit Sung, Executive Director of EEL, said they would gain an in-house refurbishment and maintenance team that will help maintain the EEL logistics fleets at competitive prices, following the proposed acquisition.

“The acquisition will also be accretive to the Group revenues and profits. The enlarged Group following the proposed acquisition would provide better services for our customers and result in higher margins from internal synergies and economies of scale,” Sung said.