KUALA LUMPUR: Ho Wah Genting Bhd (HWG) is on the right path to turnaround the business post-business diversification, after being in the red since 2010, said group executive chairman Datuk William Teo Tiew.
This following shareholder’s approval for business diversification into operation of a duty and tax free shop in Genting Highlands with its joint venture partner, Dufry International AH.
“We are overwhelmed with our shareholders’ approval on the proposed diversification that we received today.
“And certainly, we are positive with the new business that the company is venturing into, based on the experience and track record by our partner, Dufry.
“We are looking for a positive growth overall this year,” he told NST Business after HWG EGM here today.
HWG has proposed share consolidation, diversification plans into the travel retail business and a private placement of up to 77.59 million new consolidated shares, or 30 per cent of the issued capital of the group.
In September 2017, HWG and Dufry have established a company, Dufry HWG Shopping Sdn Bhd, under a 49:51 joint venture (JV).
The JV company’s duty and tax free store, Plaza A Dufry Store, is located at SkyAvenue Mall, Genting Highlands.
This is not the first time that HWG is proposing a business diversification to turnaround the business since 2010.
Since 2012 until end 2016, the company had raised RM61 million through corporate exercises, including private placements and rights issues, in its effort to revive the business.
These include its bid to acquire a few new businesses, which some of them are uncessful, and also the expansion of its mining business.
On its mining business, Teo said the company is in the middle of getting the authority’s approval to process and supply tin tailings to Rahman Hydraulic Tin Sdn Bhd (RHT) in Perak.
He said the company is expecting to receive the approval by March 31, 2018.
On March 28, 2017, HWG has secured an offer from RHT to supply 20,000 to 50,000 tonne of tailings per month.