Halex - cash rich

In mid Oct 2014, a rm2 company Solaris Cemerlang Sdn Bhd surfaced as a substantial shareholder with a 12.1% stake in Halex, an agricultural chemical manufacturer.

The private company is linked to Datuk Yip Yee Foo.

The company had acquired a block of 12.8 million shares or 12.1% stake in Halex for rm12.5 million or rm0.98 per share from Yeoh Chng Poh who ceased to be a substantial shareholder in Halex.

Sources say the first part of Yip’s comeback plan, which involves Halex buying Kensington Development Sdn Bhd has already taken off. Halex had acquired stakes in Kensington Development for rm22 million and is now looking to buy an additional 50% stake for rm32 million cash.

Kensington Development has several property projects in Sabah and is in the midst of developing 8 Avenue with a GDV of rm148 million. Its total GDV stands at rm596 million which is largely from the development of its 30 acres in Sabah.

Yip was linked to several companies in the 1990s … Cold Storage and LBS Bina.

As at end June 2014 Halex had cash and bank balances of rm14.2 million and deposits almost rm2 million while borrowings were negligible.

Halex also had retained profits of close to rm40 million at end June 2014.