Hosen Group, citing its “increasingly challenging and competitive” business of distributing and manufacturing fast moving consumer goods, wants to diversify into property investment business in Singapore, Malaysia and China.
“The Board is of the view that the property market is currently relatively stable,” the company says.
Hosen plans to keep its existing business “so long as its continuity is in the best interest” of shareholders.
The company plans to acquire and hold investments in residential, hospitality, commercial, industrial and other suitable types of properties.
It is also planning to go into property development, as well as the management of property-related assets, including facilities management, serviced apartments, student accommodation, dormitories, landscape management and car park management.
Hosen will tap existing funds on hand but might raise additional capital via rights issues, placements or debt.
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“The group has not committed to any specific business opportunity or investment under the property susiness as at the date of this announcement,” the company adds.
Hosen will hold an EGM to seek shareholders’ go ahead.
Hosen shares closed April 6 at 6.3 cents, down 4.55% for the day and down 10% year to date.