M&A exercise set to expand crane specialist’s earnings base
FAVELLE Favco Bhd is stepping out from the shadow of its parent company Muhibbah Engineering (M) Bhd .
The crane specialist plans to expand its earnings base by venturing into new growth areas through a merger and acquisition (M&A) exercise.
Two weeks ago, Favelle announced a plan to buy controlling stakes in four engineering and automation-related companies for about RM87.4mil.
Favelle is currently sitting on RM380mil cash and has been eyeing M&A partners over the past few years.
In addition, it has a gearing ratio of 0.04 as at June 30, 2017, which gives the company ample room to finance its expansion.