KUALA LUMPU&R: Pansar Bhd, a building material supplier, is buying a construction and civil engineering firm in Sarawak in a RM151mil deal.
To pay for the acquisition, Pansar has proposed to issue 346 million new redeemable convertible preference shares (RCPS), on the basis of one RCPS for every two Pansar shares.
Based on the indicative issue price of 53 sen, the exercise will raise as much as RM183.6m for the company.
Pansar, in a filing today, said it has entered into a deal with PE Holdings Sdn Bhd to acquire a 100% stake in Perbena Emas Sdn Bhd.
"The Board is of the view that Perbena is well positioned as an established and reputable construction company, in particular undertaking civil and infrastructure works in East Malaysia over the past 43 years," it said.
Perbena, it said, has secured contracts worth approximately RM647.11mil for building and construction works. "These contracts are in various stages of completion and will be completed over the next few years, providing the Group with a reliable and visible revenue stream," it said.
Perbena is also participating in project tenders with a total estimated value of approximately RM2.17bil.
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