This article first appeared in The Edge Financial Daily on December 12, 2017

KUALA LUMPUR: GETS Global Bhd (formerly known as KBES Bhd) plans to acquire the entire 79.99% stake held by Putrajaya Leisures & Services Group Sdn Bhd (PULSE Group) in loss-making Pengangkutan Awam Putrajaya Travel & Tours Sdn Bhd (PAPTT) for RM1.

PAPTT is a public transport service provider in Putrajaya, which is supported by over 170 buses. It also manages the Putrajaya Sentral Terminal, Putrajaya Park and Ride and car parks in various locations in Putrajaya.

In a filing with Bursa Malaysia yesterday, GETS Global said its wholly-owned subsidiary Konsortium Bas Ekspres Semenanjung (M) Sdn Bhd (KBESM) has entered into a share sale agreement (SSA) with PULSE Group to acquire 239,999 shares in PAPTT. Perbadanan Putrajaya owns the remaining 20.01% of PAPTT’s shares.

Under the deal, KBESM will assume liabilities amounting to RM4.97 million pursuant to the proposed acquisition.

GETS Global said the SSA will provide the group with an opportunity to venture into city bus services, which is a new sustainable business to complement the group’s existing businesses of express bus services, new bus sales and repair and maintenance services.

“GETS Global will also further unlock the potentials of other business activities under PAPTT including property management, advertising [mobile and outdoor] and travel and tours to generate new significant revenue stream for PAPTT,” it added.

KBESM will release the purchase price upon receipt of a written confirmation by the secretary of PAPTT that the name of KBESM as the registered shareholder(s) has been duly entered in the share book registry of PAPTT.

Under the deal, all the current employees of PAPTT are to remain with the company and both parties agreed that the employees are not to be transferred and/or discharged and/or dismissed and their positions shall remain the same for six months after the perfection of the transfer of the sale shares.

Based on the audited financial statements for the financial year ended Dec 31, 2016 (FY16), PAPTT posted a net loss of RM4.9 million.

GETS Global intends to fund the proposed acquisition via the group’s internal funds.

The proposed acquisition is not expected to have any material effect on the group’s consolidated gearing of the company for FY17.

GETS Global expects the proposed acquisition, which is expected to be completed on March 11, 2018, to contribute positively to the group’s future earnings and earnings per share.