‘JV with Dufry to help turn around Ho Wah Genting’
Shareholders approve plan to operate duty-free shop in Genting Highlands
HO Wah Genting Bhd (HWG) is on track to turn around its business post-diversification, after being in the red since 2010, says group executive chairman Datuk William Teo Tiew.
This follows shareholders’ approval for the company to operate a duty- and tax-free shop in Genting Highlands with its jointventure partner Dufry International AH.
“We are overwhelmed by our shareholders’ approval of the diversification and positive about the new business, based on the experience and track record of our partner, Dufry. We are looking for a positive growth this year,” Teo said after HWG’s extraordinary general meeting, here, yesterday.
HWG had proposed share consolidation, a diversification into the travel retail business and a private placement of up to 77.59 million new consolidated shares, or 30 per cent, of the group’s issued capital.
In September last year, HWG and Dufry set up a company, Dufry HWG Shopping Sdn Bhd, under a 49:51 joint venture (JV).
The JV company’s duty-and tax-free store, Plaza A Dufry Store, is located at SkyAvenue Mall in Genting Highlands.
This is not the first time HWG has proposed a diversification plan to boost its business.
From 2012 until end2016, the company had raised RM61 million through corporate exercises, including private placements and rights issues. Other efforts included bids to expand its mining business and acquire a few new businesses, some of which were unsuccessful.
Teo said HWG was in the process of getting the authority’s approval to process and supply tin tailings to Rahman Hydraulic Tin Sdn Bhd in Perak.