Hap Seng Consolidated Berhad (KLSE:HAPSENG) entered into an equity transfer agreement to acquire Lei Shing Hong Wood Products Limited from Lei Shing Hong Trading Limited for $3.2 million in cash on January 18, 2016. As part of consideration, Hap Seng will pay $3.22 million for the entire issued capital of Lei Shing Hong Wood Products representing 2 million shares on the completion date. As part of transaction, Lei Shing Hong Wood Products Limited and its wholly-owned subsidiary, Lei Shing Hong Wood Products (Shanghai) Co.

Ltd. will become wholly owned subsidiaries of Hap Seng Consolidated Berhad. The transaction is expected to be funded through cash from internally generated funds of Hap Seng. Lei Shing Hong Wood Products had net assets of $3.22 million as at September 30, 2015.

The transaction is not subject to shareholders' approval or approval from any relevant government authorities. The transaction is expected to complete within two months from the date of agreement. The transaction is not expected to have any material effect on earnings per share of Hap Seng for the financial year ending December 31, 2015, however the transaction is expected to contribute positively to the future earnings and earnings per share of Hap Seng Consolidated Berhad.