PETALING JAYA: Pansar Bhd has proposed to acquire a construction and civil engineering company for a purchase consideration of RM151mil to diversify its business.
The engineering solutions provider said yesterday it had entered into a conditional share purchase agreement with PE Holdings Sdn Bhd to acquire a 100% stake in Perbena Emas Sdn Bhd, which has civil works, building works and infrastructure projects in Sarawak.
“The company has an existing secured order book of approximately RM645mil and is in advanced stages of tendering for more than RM2bil worth of new projects, ” Pansar said in a statement. The acquisition was in line with the proposed diversification of its principal activities to include construction and civil engineering.
In addition, Pansar had proposed to undertake a renounceable rights issue of redeemable convertible preference shares (RCPS) to raise at least RM120mil to part-fund the acquisition. Each RCPS would carry a dividend rate of 4% per annum based on the indicative issue price of 53 sen during the tenure of the RCPS.
Pansar said it would raise the balance funding for the acquisition through new debt facilities.
Upon completion of the proposed acquisition, Pansar anticipates the revenue and earnings stream from Perbena’s core business of construction and civil engineering to contribute substantially to the net assets and net profits of the group.
It noted Perbena’s existing order book comprised secured contracts for building and construction works, which would be completed over the next few years.
In line with the Sarawak government’s thrust for infrastructure development, Perbena is also participating in project tenders with a total estimated value of more than RM2bil, which, if secured, would further enhance its order book and earnings potential, it said.
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