Hiap Seng shares soar 75% after Indonesian oil giant Chandra Asri buys an 11.9% stake in firm
Future partnerships between both companies could be on the horizon, says Hiap Seng Industries
[SINGAPORE] Indonesian petrochemical producer Chandra Asri has purchased an 11.9 per cent stake in Hiap Seng Industries, giving it a substantial stake in the steel fabrication service provider.
News of the purchase on Wednesday (Jul 23) sent Hiap Seng shares soaring 75 per cent, or 0.9 cent, to end at a multi-year high of 2.1 cents, on a hefty turnover of 203 million units.
Chandra Asri’s entry could signal a future partnership between both companies, said Hiap Seng in a statement before market open on Wednesday.
Chandra Asri is a subsidiary of Barito Pacific, the Indonesian power and industrial giant founded by billionaire tycoon Prajogo Pangestu.
Max Tan, Hiap Seng Industries’ chief executive officer, said: “(We) view this as a potential opportunity to explore strategic collaborations that will enhance long-term value for all stakeholders.”
Mashhad Dohadwala, who is projects and technology director at Aster Chemicals and Energy – a joint venture between Chandra Asri and global commodities trader Glencore – said that a strategic relationship with Hiap Seng would strengthen Aster’s foundation to position it for future growth as it explores partnership opportunities.
Aster is reportedly in exclusive talks to buy oil major ExxonMobil’s Singapore gas stations. Prior to that, it completed its purchase of Shell’s Singapore refinery and refining assets on Bukom and Jurong islands.
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