KUALA LUMPUR (Sept 26): Takaso Resources Bhd (Takaso), a condoms and baby care accessories manufacturer, is venturing into the construction industry, having entered into a letter of intent (LOI) to acquire a 100% equity interest in Dynavance Sdn Bhd.

In a filing to Bursa Malaysia, Takaso said Dynavence is engaged in general construction which includes the construction of superstructure work, external work and mechanical and electrical work. It also provides skill and general workmen, materials, plants and all necessary machineries.

Under the LOI, Dynavance had represented and warranted it would deliver a minimum of RM12 million in net profit over 24 months, after the completion of the deal. The purchase consideration for Dynavance was not disclosed in the announcement.

According to Takaso, the sale and purchase agreement (SPA) will be signed within seven days of the LOI. Full disclosure by Dynavance for the due diligence process, is also a condition to the completion to the deal.

“The audit committee and board of directors are of the opinion that the salient terms of the LOI are in the best interest of Takaso Group, and the acquisition will not be detrimental to the interest of the minority shareholders,” said Takaso.

Dynavance is currently undertaking two construction projects. It has a contract to construct six blocks of low cost residential apartments for Konsortium SKS Bhd worth RM140 million, which will commence in March 2015 and is to be completed in May 2017.

Dynavance’s other project is for the construction and completion of earthworks and foundations works for an entertainment outlet. The job is worth RM10.52 million and is to be completed in June 2015.

Takaso said it will announce other information pertaining to the SPA, once it has been signed.