M&A Securities Sdn Bhd (“M&A Securities”), on behalf of the Board of Directors of HIB (“Board”)(save for Dato’ Ong Choo Meng and Ong Tzu Chuen who are collectively referred to as the “Abstaining Directors”)) wishes to announce the following:

(a) HIB had on 8 August 2022 entered into a conditional share sale agreement (“SSA”) with Hextar Holdings Sdn Bhd (“HHSB” or “Vendor”) for the proposed acquisition of the entire equity interest in Hextar Fertilizers Limited (“HFL”), from the Vendor for a total purchase consideration of RM480.0 million (“Purchase Consideration”) to be satisfied via the issuance and allotment of 1,600,000,000 new ordinary shares in HIB (“HIB Shares” or “Consideration Shares” or “Shares”) at an issue price of RM0.30 per Consideration Share (“Proposed Acquisition”); and

(b) Proposed offer for sale of such number of Consideration Shares to investors to be identified (“Proposed Offer For Sale”).

(The Proposed Acquisition and Proposed Offer For Sale are collectively referred to as the “Proposals”)

In view of the interest of the major shareholder of HIB and/or persons connected with it (“Interested Major Shareholders”), the Proposed Acquisition is deemed a related party transaction pursuant to Rule 10.08 of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad (“Listing Requirements”). In this respect, the Board (save for the Abstaining Directors) has appointed Malacca Securities Sdn Bhd to act as the Independent Adviser to advise the non-interested directors and non-interested shareholders of HIB on the Proposed Acquisition. 

Please refer to the attachment for further details of the Proposals.

This announcement is dated 8 August 2022.