2 weeks Ago
KUALA LUMPUR: Gagasan Nadi Cergas Bhd has entered into a RM185mil deal to acquire the entire 100% stake in Konsortium PAE Sepakat Sdn Bhd (KPSSB), via the purchase of holding companies Serata Ehsan Sdn Bhd and Seri Delima Anggun Sdn Bhd. KPSSB is the owner of special purpose vehicles (SPV) that hold concession agreements with the government to construct buildings, facilities and infrastructure, as well as provide maintenance services to seven polytechnics in various locations in the country. The group said in a stock exchange filing it will purchase the entire equity in Serata Ehsan, which holds 44.
44% of KPSSB, from Chong Ngu Chong and Lim Eng Keong for a consideration of RM80mil. Meanwhile, it will pay a sum of RM105mil for the entire equity in Seri Delima Anggun, which holds the remaining 55.56% stake in KPSSB.
Gagasan Nadi Cergas said it will fund the purchases via fundraising from the debt capital markets, bank borrowings and internally generated funds. The group said the proposed acquisitions will allow it to indirectly own the polytechnic SPVs, which will complement its current concessions to construct and provide asset management services to student hotels at two public universities. "As the polytechnic SPVs are already generating revenue and profitable, the proposed acquisitions will enable Gagasan Nadi Cergas to participate and enjoy recurring and sustainable income and cash flow streams.
"As such, the proposed acquisitions are expected to contribute positively to the future earnings and cash flows of the group," it said..
