KUALA LUMPUR: Gamuda Bhd
has executed a subscription and shareholders agreement to acquire 30% equity interest in ERS Energy Sdn Bhd via a subscription of 4.29 million new shares for a consideration of RM200mil cash.
In a statement, the construction group said ERS Energy is a leading solar energy engineering procurement construction and commissioning (EPCC) company and one of the early entrants to the Malaysian solar scene.
It said the acquisition will be satisfied with internal generated funds and borrowings.
"The subscription price, which values ERS Energy at a pre-money equity value of RM467mil, was arrived at on a willing-buyer willing-seller basis after taking into consideration, amongst others, comparable companies’ trading multiples, projected profitability, growth, as well as future prospects of ERS Energy in the renewable energy sector," said Gamuda.
In its rationale, it said the proposed ERS Energy investment will enable the group to fast-track its renewable energy business plan.
It added that the acquisition will also enable it to pursue much wider energy-related opportunities presented by the trajectory of the global energy transition including energy storage, smart grids and associated infrastructure.
Following the purchase, ERS Energy will be a 30%-owned associate company of Gamuda.
