The group had in September last year announced that it entered into a conditional share purchase agreement with PE Holdings Sdn Bhd to acquire 100 per cent equity interest in the issued share capital of PESB for a purchase consideration of RM151 million.
The company had later received the shareholders’ approval for the proposed acquisition on Dec 22 through an extraordinary general meeting.
In a statement Monday, Pansar said the construction sector in Sarawak is expected to prosper over the next few years, driven by the RM22 billion in spending for infrastructure projects by the Sarawak government, including the Second Trunk Road, coastal road upgrades, water grid programmes, rural electrification projects, and telco towers.
"At the time of the exercise in August 2020, PESB’s order book was at RM647.11 million and it also won an additional RM813 million orders following the award of new infrastructure projects as at February 2021, taking the total outstanding order book to RM1.46 billion,” it said.
It said PESB’s order book that comprises notable infrastructure projects, would support its earnings visibility over the next two to five years.
The company is also currently at the advanced stages of bidding for additional construction and infrastructure projects worth some RM1.34 billion.
Furthermore, it said the group (Pansar) today issued its Abridged Prospectus for the implementation of its renounceable rights issue of new redeemable convertible preference shares (RCPS) in Pansar.
The opening of applications for the rights issue will commence on March 9, with the last date for acceptance and excess share application on March 23, it said.
"Pansar’s rights issue exercise will see the group raising approximately RM121 million to part-fund the group’s acquisition of the entire equity interest in PESB,” it noted.
The acquisition, Pansar said serves as a strategic entry into the construction industry, leveraging PESB’s established track record and capitalising on key management of PESB significant experience’ in the day-to-day operations and management of construction projects.
Pansar’s major shareholder, Pan Sarawak Holdings Sdn Bhd, has provided its undertaking to subscribe for its entitlement under the rights issue, totalling 150,750,001 RCPS, it said.
"The remaining 78,575,974 RCPS representing approximately 34.26 per cent of the total RCPS to be issued, will be underwritten by UOB Kay Hian Securities (M) Sdn Bhd.
"The issue price for the rights issue at RM0.53 per RCPS represents a discount of approximately 27.40 per cent to the closing price of Pansar shares of 73 sen as at March 5 and the RCPS carries a dividend rate of 4 per cent per annum,” it added. - Bernama