Hong Lai Huat: complete divestment of agriculture division

Hong Lai Huat: complete divestment of agriculture division

Hong Lai Huat Group Limited has completed the disposal of its agricultural division in Cambodia following 99.99% shareholder approval for the sale of HLH Agriculture (Cambodia) Co., Ltd. (HLHA) and HLHI (Cambodia) Company Ltd. according to reports. The transaction includes the sale of HLHI for US$1.5 million (S$2.02 million) and HLHA for US$36 million (S$48.4 million), generating total proceeds of approximately S$50.23 million. The proceeds will be used to strengthen the company's balance sheet and fund its transition toward a full-suite real estate and property development focus in Cambodia as stated.

HLHA, which operated 12 parcels of agricultural land (8,999.95 hectares) under 50-year economic land concessions, has reported sustained losses, including an S$8.8 million loss in FY2022 and S$1.8 million in 1HFY2023. The board cited ongoing challenges, including the remaining 36-year concession term, operational risks, and limited prospects for financial improvement, as key reasons for the divestment. The disposal of HLHA represents a 17.05% discount to its net tangible asset value of US$43.4 million.

The sale of HLHI, which holds dormant freehold land (509.54 hectares), was valued at a 44.6% discount to its net tangible assets. The company stated it has no immediate plans to develop this land and prefers to focus on its urban landbank. Post-disposal, Hong Lai Huat expects to recognise a S$13.6 million loss on HLHA and a S$254,051 gain on HLHI. The transaction is anticipated to improve liquidity and reduce gearing, supporting future property development projects. Shares in Hong Lai Huat closed at 4.3 cents on March 5, 2026 according to market data.