KUALA LUMPUR (April 2): Pasukhas Group Bhd has proposed to diversify its business to include property development and coal trading.

Pasukhas executive director cum chief executive officer Wan Thean Hoe said the diversification is within the group's expansion plans, which is to diversify into new viable businesses to enhance its income stream.

"We believe that we would be able to leverage on our expertise in civil engineering and construction in our venture into property development, which would in turn create a synergistic effect to Pasukhas’s existing business in the civil engineering and construction segments," Wan said in a statement today.

Similar with the expansion into the coal business, Wan said this venture would unlock new opportunities for the group to grow horizontally within its existing utilities and power generation businesses.

"Ultimately, we expect that both these diversified businesses will enhance our net profits and generate long term income for the group," he added.

The group will seek approval from its shareholders at a forthcoming extraordinary general meeting.

Pasukhas, via its wholly-owned subsidiary Pasukhas Development Sdn Bhd, with joint developers Pasukhas Properties Sdn Bhd and Midtown Pearl Sdn Bhd, will be undertaking the development of Lushwoods Towers and Residences here, upon approval from Kuala Lumpur City Hall.

The proposed project will have an estimated gross development value of RM438.9 million, which is expected to contribute 25% or more of the group's net profit and/or net asset. 

Pasukhas had recently announced that its wholly-owned subsidiary Pasukhas Products Sdn Bhd had ventured into the coal business segment to supply three vessels of steam coal at RM60.4 million, out of anchorage point of South Kalimantan, Indonesia.

In a separate filing with Bursa Malaysia today, Pasukhas said it plans to raise up to RM13.93 million via a special issuance of new shares.

It is proposing to issue up to 116.06 million new shares or a 12.5% stake of the group’s enlarged issued share capital to bumiputera investors to be identified and/or approved by the ministry of international trade and industry.

Wan said the gross proceeds will be used for its future business projects or investments in the energy utilities services and power generation business segments within the next two years.

This is assuming the special shares are issued at an issue price of 12 sen per share, based on an approximate 6.8% discount to the five-day volume weighted average market price, up to and including the latest practicing date as at March 30, 2018 of 14 sen.

However, the exact amount of proceeds to be raised from the proposed special issue will depend on the actual issue price and the actual number of special issue shares to be issued, which will be determined at a later date.

Pasukhas shares closed unchanged today at 13 sen, with 10,000 shares done, bringing a market capitalisation of RM105.51 million.