HEB executive director Tan Sri Kuna Sittampalam said the aim of the acquisition was to strengthen the group's engineering consulting space in the water infrastructure sector.
"Our consolidated expertise will accelerate our position to be a key contender to undertake projects not only in Malaysia but in the international market as well," he told reporters after the signing of heads of agreement between HEB and SMHB in Kuala Lumpur on Friday.
He said the purchase consideration of RM270 million entailed RM162 million cash and issuance of RM108 million worth of HEB shares to the vendors.
“The cash consideration will be raised from a 50:50 combination of bank borrowings and placement and rights issue.
“The enlarged entity would have a substantial combined order and tender book of nearly RM740 million and RM465 million, respectively,” he said.
Kuna said that as the combined entity, the group's revenue would increase to RM232 million from RM139 million and expects net profit to be at RM39 million from RM14 million.
Going forward, he said, the group would expand its market and expertise into overseas countries particularly Asean, West Asia and India.
HEB shares were suspended on Friday and would resume trading on Oct 2. - Bernama
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