Gamuda to acquire RM636mil Australian transport projects

KUALA LUMPUR: Gamuda Bhd’s wholly owned foreign sub-subsidiary in Australia, DT Infrastructure Pty Ltd has acquired the Australian transport projects business (Downer Transport Projects) for an enterprise value of A$212 million (RM636 million).

DT Infrastructure has executed an asset sale agreement with Downer EDI Works Pty Ltd and VEC Civil Engineering Pty Ltd (collectively Downer), Gamuda said in a filing with Bursa Malaysia today.

Downer Transport Projects (DTP) is a distinct business unit under Downer that provides civil construction services in delivering transport projects for its customers, with specialist rail capability.

Gamuda said DTP operates across Australia and primarily generates revenue from government clients, with a smaller share coming from private projects. Its customer base, contacts and geographical exposure are mainly in New South Wales, Western Australia and Victoria.

Some of the key projects currently carried out by DTP are in relation to rail line upgrades and duplication, rail extension, rail maintenance, service signalling and communication maintenance, and freeway upgrades.

The DTP acquisition is a strategic move for Gamuda and is in line with its growth plan of achieving A$3 billion in revenue annually in Australia within the next two to three years.

"With the acquisition, Gamuda will be tapping DTP’s in-house capabilities and track record namely track infrastructure, light rail, stations, rail overhead lines, signalling, communications and integration, rail maintenance, specialist plant services and road and bridge construction,” the group said.

It added that the consolidated capability and additional construction pipeline from DT Infrastructure across Australia will reinforce Gamuda’s position as they expand market reach in Australia by venturing into wider rail disciplines.

"Gamuda will be well positioned to participate in a larger pipeline of transport projects focusing on rail, light rail and rail systems, with an established network of subcontractors,” it said.

The DTP acquisition is expected to be completed by the end of the second quarter of 2023 and is expected to contribute positively to Gamuda's earnings from the financial year 2024 onwards. - Bernama