Rohas Tecnic takes control of transmission line contractor for RM91.7mil

HIGH VOLTAGE: The 275kV being carried by the high tension cable towers is deemed by residents as a ‘significant increase in electricity transmission’ and a ‘change in land use’ as the previous 33kV lines were of low Voltage (33kV).

KUALA LUMPUR: Rohas Tecnic Bhd (RTB) has acquired a 75% stake in HG Power Transmission Sdn Bhd, an engineering, procurement, construction and commissioning (EPCC) firm, for RM91.66mil.

RTB, whose core business recently changed to fabricating steel towers for power transmission and telecommunications, told Bursa Malaysia that it had signed a conditional agreement to buy the stake from PT Safe Tower Systems Sdn Bhd and Kemuncak Agresif (M) Sdn Bhd.

The purchase consideration for the stake in HG Power, a turnkey solutions provider for high voltage transmission lines and substations, will be satisfied with RTB shares and RM22.5mil in cash.

PT Safe Tower will receive new RTB shares issued at 95 sen each, hence becoming a substantial shareholder in RTB with a 15.4% stake.

Kemuncak Agresif, meanwhile, will be paid the cash amount.

The purchase consideration is lower than the RM101.67mil indicated under the heads of agreement inked on April 10, with the number of RTB shares to be issued being reduced by 12.6% from 83.33 million. 

On the rationale for the purchase, RTB said HG Power was a leading Malaysia-based EPCC provider with a long and proven track record in providing turnkey solutions for high voltage transmission lines and substations within Malaysia and the region (including Papua New Guinea, Indonesia and Bangladesh). 

HG Power, it noted, had been involved in the construction of more than 4,700km of transmission lines in Malaysia and abroad.

“After the completion of the proposed acquisition, the enlarged RTB group will become a one-stop fabrication base and turnkey solutions provider for the provision of fabrication of power transmission and telecommunication steel towers, and construction of transmission lines in Malaysia and the Asean region,” RTB said.

“In addition, the proposed acquisition will enable the RTB group to gain access to the entire value chain of the power transmission industry, thereby increasing its negotiation strength when bidding for and securing new projects.”