New high for Dagang NeXchange Bhd
SHAH ALAM: Diversified group Kumpulan Perangsang Selangor Bhd
(KPS) has raised its shareholdings in KPS-HCM Sdn Bhd (KPS-HCM) by 21% to a majority stake of 51% as part of its corporate exercise.
Prior to the exercise, KPS and HCM Engineering Sdn Bhd held 30% and 70% stakes respectively in KPS-HCM.
With this, KPS had subscribed to an additional 1.715 million shares for total consideration of RM1.715mil to increase its shareholding to 51%.
Resulting from the increase in stake, KPS-HCM will become a subsidiary of KPS upon completion of the subscription of shares.
KPS-HCM is involved in road and highway construction as well as road maintenance and rehabilitation in the State of Selangor. The company is a partnership between KPS and HCM Engineering, a subsidiary of Protasco Bhd.
KPS-HCM has recently been awarded by Central Spectrum (M) Sdn Bhd a total contract sum of RM174.4mil to undertake the proposed infrastructure works for the development of Phase 3C, Lot 74079, Pulau Indah Industrial Park, Pulau Indah.
The works are to be completed within 18 months commencing from July 5 to January 5, 2019 and are expected to contribute positively to the results of KPS Group for the financial years ending December 31, 2017 to 2019.
KPS CEO Ahmad Fariz Hassan in a statement said: “Holding a majority stake in KPS-HCM enables us to steer its future growth direction and consolidate its future results into the Group’s top and bottom lines, compared to only equity-accounting its share of profits as an associate.
“In fact, this newly-secured contract spurs us to continue tendering for similar projects in order to sustain the performance of our infrastructure and utility segment going forward.
“We envisage for KPS-HCM to move beyond its existing scope of road construction, maintenance, refurbishment and rehabilitation, to provide general civil engineering works, building construction and maintenance for both public and private sector.”
This move was in line with the group’s direction under the Strategic Business Plan where KPS would hold a majority stake in companies under its portfolio, and harness their potential for future expansion.
KPS had undertaken a similar exercise in 2016, where it increased its shareholding in Aqua-Flo Sdn Bhd to hold a direct 51% stake, from an indirect stake of 36% equity in the water treatment chemicals and equipment trader.
Aqua-Flo had secured three contracts with a cumulative total of RM98.1mil in May 2016, to be delivered over a two-year period.
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