PTT Synergy Group Bhd is planning to acquire 100% stake in construction firm Pembinaan Tetap Teguh Sdn Bhd (PTTSB) for RM152 million.
It told the stock exchange today that it had entered into a conditional share sale agreement (SSA) with vendors, Teo Swee Phin (TSP), Teo Swee Leng (TSL) and Faddly Nordin, for the proposed acquisition of 25 million ordinary shares, or 100% equity interest in PTTSB.
The proposed acquisition is deemed to be a related party transaction in view of the interests of certain directors and major shareholders of the company in the agreement.
BDO Capital Consultants Sdn Bhd has been appointed to act as the independent adviser to advise the non-interested directors and non-interested shareholders of the company in respect of the proposed acquisition.
PTT said the proposed acquisition represents a strategic investment and is undertaken in-line with the group’s objectives and strategy to grow its construction business.
The group said it would also provide an opportunity for PTT Group to bolster its earnings stream which is expected to strengthen the financial performance for the next two financial years of the enlarged PTT Group.
PTTSB has 11 ongoing construction projects with an aggregate contract value of RM539.85 million as of March 8, 2023.
PPT shares were unchanged at RM1.15 today with a market capitalisation of RM114 million. – TMR / pic credit: ANNUAL REPORT