The integrated engineering, contracting and maintenance services firm
KUALA LUMPUR: Serba Dinamik Holdings Bhd
's unit Serba Dinamik Group Bhd has announced its proposed acquisition of 34.54 million shares or about 10% stake in Green & Smart Holdings plc (GSH) for RM13mil cash.
The group said in a stock exchange filing that the proposed acquisition is part of a strategy to expand into an asset ownership model as well to expand its EPCC business segment and capabilities.
The stake will also give Serba Dinamik the first right of refusal on all future EPCC works under GSH.
GSH previously completed two bio-gas plants and awarded one EPCC contract to Serba Dinamik for a 2.7MW biogas power plant in Teluk Intan, Perak.
According to the filing, GSH is developing three other bio-gas plants with an estimated total project value of RM49mil, and could potentially embark on joint ventures with leading plantation owners to develop bio-gas plants that carry EPCC contracts valued at about RM40mil.
"Taking the aforesaid into consideration, the SDHB Group is expected to reap benefits in the form of the EPCC opportunities as well as in the form of dividends (if any) as a shareholder of GSH," said Serba Dinamik.
The share sale agreement for the proposed purchase was made with GSH substantial shareholders K2MV, Saravanan Rasaratnam and Navindran Balakrishnan.
Saravanan and Navindran each hold 3.4% direct interest in GSH and jointly control K2MV, which owns 42.5% equity interest in the company.
Serba Dinamik Holdings presently owns a 15% indirect stake in GSH via its subsidiary Serba Dinamik International Ltd. On Aug 2, Serba Dinamik International subscribed for 51.8 million or about 15% of the enlarged number of issued shares in the company in a private placement exercise for about RM17.1mil cash.
For the six months to March 31, 2018, GSH recorded a revenue of RM1.82mil and loss after tax of about RM5.74mil. During the period, the net assets of the company stood at about RM41.77mil.
