Hong Leong Asia to spin off engine unit for Hong Kong IPO

The Singapore firm seeks HK listing for marine, genset arm.

Hong Leong Asia Ltd is planning to spin off its subsidiary, Guangxi Yuchai Marine and Genset Power Co., Ltd. (MGP), and list the company on the Hong Kong Stock Exchange (HKEX).

In a filing to the Singapore Exchange (SGX), Hong Leong Asia said MGP has submitted a listing application to HKEX as part of the proposed separation.

The company said it had consulted SGX Regulation on the plan, and the exchange’s market regulator indicated it has no comments on the proposal based on the information provided.

SGX added that it may revise its position if circumstances or regulatory requirements change.

Hong Leong Asia does not expect to seek shareholder approval for the spin-off, as MGP is considered a principal subsidiary and the transaction structure is not expected to trigger a vote under current listing rules.

The company said the proposed listing is subject to regulatory approvals and market conditions, with no assurance the spin-off will proceed.

It added that further announcements will be made if there are any developments.