4. TAN SRI LAU CHO KUN Flagship: Hap Seng Group Net worth: RM18.20bil

SABAH tycoon Tan Sri Lau Cho Kun has interests in several companies listed on Bursa Malaysia, led by Hap

Seng Consolidated Bhd. Hap Seng Consolidated’s market cap stood at RM24.52bil based on its share price of RM9.85 as at December 2018.

Lau controls a 73.9% block in Hap

Seng Consolidated through privately-held Gek Poh (Holdings) Sdn Bhd and Lei Shing Hong Investment Sdn

Bhd (LSHI). He is the nephew of the late Tan Sri Lau Gek Poh, the maverick businessman who founded the group.

The group controls 53% of palm oil producer, Hap Seng Plantations Bhd, and is the second-largest shareholder in soap manufacturer Paos Holdings Bhd with a 25% stake.

It is a significant Mercedes-Benz passenger car dealer, commanding a 40% market share. It is also involved in credit financing, quarry and building materials and the fertiliser business.

Despite the family’s controlling stake, professional managers have been brought in to run the show at the various companies.

Elsewhere, Lau is a substantial shareholder in Borneo Oil Bhd with a 5.1% stake.

Going by recent corporate exercises by the group, it would appear that Lau has a strategy to expand operations in the country.

In the last two years, Hap Seng has raised RM2.8bil from selling some of its key assets to Lau’s private vehicle LSHI. The proceeds went to partially pare down debts and fund the group’s operations in some of its key business divisions.

This include, among others, funding its money lending business and planned integrated mixed development project within the KL Metropolis development located along Jalan Dutamas, Kuala Lumpur.

The group had also acquired tile manufacturer Malaysian Mosaics Sdn Bhd from Gek Poh Holdings to complement its property business.

Last year, Bloomberg reported quoting sources that Lei Shing Hong Ltd, which runs MercedesBenz dealerships in Asia and Europe, was planning to relist in Hong Kong in a deal that could raise around US$800mil.

The company was taken private a decade ago in a deal valuing it at US$1.4bil then.

Lei Shing Hong runs Mercedes-Benz dealerships in mainland China, Taiwan, South Korea, the United Kingdom, Germany, Australia, Vietnam and Cambodia. It also sells Porsche vehicles in South Korea.