Eversendai to bid for projects in Thailand

Eversendai Corporation Bhd executive chairman and group managing director Datuk A.K. Nathan during the launch of the company's Investor Relations section.

KUALA LUMPUR: Eversendai Corp Bhd, an engineering and construction services provider, is expanding its South-East Asian footprint with the acquisition of a 70% stake in Thailand-based S-Con Engineering Co Ltd.

Eversendai, which already has a strong presence in the Middle East region, India and Malaysia, said in a statement that S-Con Engineering’s expertise was in steel fabrication and plant construction, with over 20 years of experience.

Eversendai’s unit Eversendai Construction (S) Pte Ltd on Tuesday signed a shareholders’ agreement with S-Con founder and owner Anuchart Suphannarat and son Anirudh Suphannarat, as well as a conditional share subscription agreement with Anuchart and S-Con, to subscribe to 70% of the total voting rights in S-Con for 30 million baht (RM3.54mil) in cash. The acquisition will see the turnkey contractor bidding for steel, composite structures, power and petrochemical plant as well as infrastructure projects in Thailand and its surrounding regions.

“S-Con Engineering’s core business over the past two decades has been in carbon steel and stainless steel fabrication, mechanical construction and installation,” it said.

“The company has the ability to offer full turnkey solutions in design, project management, equipment supply, system installation, commissioning and maintenance.”

Commenting on the new development, Eversendai executive chairman and group managing director Tan Sri A.K. Nathan said: “The proposed acquisition of S-Con Engineering is in line with the company’s business plan to expand its footage in the South-East Asian region.

“Eversendai has been looking at growing and exploring business opportunities in Thailand where we foresee prospective projects that fit into our portfolio. This is a marvellous opportunity for Eversendai to venture into Thailand with a ready infrastructure as we establish a potential additional future income stream.”

The company said the proposed acquisition would allow it to utilise S-Con’s fantastic track record to grow and strengthen its established working relationship with its international clients and undertake a range of projects in Thailand while also exporting fabricated works overseas.

Eversendai shares shed 2.5 sen to close at 84 sen on Wednesday.