PETALING JAYA: Hovid Bhd has clarified that the the default in some loans by 58.2% owned subsidiary Carotech Bhd has no impact on the company.
“The default in loans by Carotech happened solely at Carotech and it has no legal implication on Hovid as Hovid has not provided any guarantee for the loans of Carotech. Additionally, Hovid does not have any financial obligation to Carotech,’’ it said in statement to Bursa Malaysia yesterday.
Hovid and its other subsidiaries, excluding the Carotech Group, are not in default of any of their respective loan obligations.
Although, Carotech is major subsidiary of the Hovid group of companies, the businesses of Hovid and Carotech are different.
Shares in Hovid plunged 3.5 sen, or 17% to 17 sen yesterday, while Carotech tumbled 4.5 sen, or 33% to a record low of 9 sen.
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