By SULHI KHALID / Graphic By TMR

Board of Gamuda has agreed to vote in favour of accepting the offer made by the government to purchase all securities in its four toll highways, worth RM6.2 billion.

In an exchange filing to Bursa today, the Board will make appropriate announcements in due course after going through due diligence process with its respective associated companies and joint venture company.

Last week, Ministry of Finance (MoF) inc has made an offer to acquire all securities of Lingkaran Trans Kota Berhad (LITRAK), Kesas Sdn Bhd (KESAS) , Syarikat Mengurus Air Banjir & Terowong Sdn Bhd (SMART) and Sistem Penyuraian Trafik KL Barat Sdn Bhd (SPRINT). 

Gamuda’s stakes in LITRAK, SPRINT, KESAS and SMART are 44%, 52%, 70% and 50%, respectively.

In a separate filing, Gamuda Bhd’s net profit for the third quarter ended April 30, 2019 (3Q19) fell by 13% year-on-year (YoY) to RM176 million due to the group’s decision to stop recognizing its share of Syarikat Pengeluaran Air Selangor Holdings Bhd (SPLASH) profits following the sale of SPLASH end of last year. 

The construction engineering company revenue for the period declined by 16% to RM1.03 billion on lower revenue posted from its construction and property division. 

Gamuda highlighted the lower construction unit earnings is due to the reduction in Mass Rapid Transit (MRT) Line 2’s contract value following the agreement with the Government to undertake the elevated and underground works as a single Turnkey Contract. 

On its outlook, the group anticipates its performance to be driven by overseas property sales especially Vietnam. 

According to the group, the property division sold RM2 billion worth of properties for the first nine months of this year. Overseas projects contributed two-thirds of the overall sales.

“The two developments in Vietnam namely Gamuda City in Hanoi and Celadon City in Ho Chi Minh City continued to deliver steady results and remained the biggest contributor of overseas sales,” it said.

Gamuda shares closed five sen higher yesterday to RM3.72, valuing the company at RM9.2 billion.