Asset Acquisitions and Disposals::Change of Shareholdings in Subsidiary and Associated Company

Issuer & Securities

Issuer/ Manager
HONG LEONG ASIA LTD. - SG1F76860344 - H22
Stapled Security

Announcement Details

Announcement Title
Asset Acquisitions and Disposals
Date &Time of Broadcast
05-Nov-2015 19:34:07
Announcement Sub Title
Change of Shareholdings in Subsidiary and Associated Company
Announcement Reference
Submitted By (Co./ Ind. Name)
Ng Siew Ping, Jaslin
Company Secretary
Description (Please provide a detailed description of the event in the box below)
The Board of Directors of Hong Leong Asia Ltd. ("the Company") wishes to announce the following:

1. Increase of shareholding in Guangxi Yulin Yuchai Accessories Manufacturing Company Limited ("YYAMC")

Guangxi Yuchai Machinery Company Limited ("GYMCL"), a subsidiary of China Yuchai International Limited, which in turn is a subsidiary of the Company, has acquired the remaining 2.86% equity interest in YYAMC (the "Acquisition") from Guangxi Yuchai Machinery Group Company, its joint venture partner, for a consideration of RMB4,170,000. Following the Acquisition, YYAMC has become a wholly-owned subsidiary of GYMCL.

The consideration for the Acquisition was arrived at on a "willing-buyer willing-seller" basis and computed based on the net asset value of YYAMC. The consideration was satisfied in cash and funded through internal sources.

2. Reduction of shareholding in Guangxi Yineng IOT Science & Technology Co., Ltd ("Guangxi Yineng")

GYMCL originally had 40% equity interest in Guangxi Yineng, with its joint venture partner, Guangxi Skylink Software Technology Co., Ltd. ("Guangxi Skylink"), holding the remaining 60% equity interest. After consideration, GYMCL has decided not to increase its investment in this associated company beyond its current capital contribution of RMB7.2 million. With the additional capital contribution from Guangxi Skylink, GYMCL's equity interest in Guangxi Yineng has been reduced from 40% to 20%, whilst its joint venture partner's equity interest has increased from 60% to 80%.

By Order of the Board

Ng Siew Ping, Jaslin
Company Secretary

5 November 2015