Advancecon buys 51% stake in loss making quarry operator for RM30.4mil

KUALA LUMPUR: Advancecon Holdings Bhd has announced a deal to a acquire majority stake in a loss making quarry operator for RM30.4mil.

Under the deal, Advancecon will pay RM15.22mil cash and issue 33 million new shares to Fook Hua Holdings Sdn Bhd for a 51% stake in Spring Energy Resources Bhd (SERB).

The new shares will be issued at 46 sen each, the company said in a filing today.

For the financial year ended Dec 31, 2020, SERB made a RM100mil loss on revenue of RM146mil.

"In the long run, the Proposed Acquisition is expected to improve the earnings of the enlarged Advancecon Group given that the Board and management of SERB have outlined a turnaround plan to improve SERB Group's earnings and overall operating structure," Advancecon said.