Friday 29 Mar 2024
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KUALA LUMPUR (Sept 13): Puncak Niaga Holdings Bhd announced that it has received the greenlight from the Securities Commission Malaysia (SC) to proceed in its plan to acquire TRIplc Bhd for RM210 million cash, to enhance its construction segment's revenue and long-term growth prospects.

The approval, said Puncak Niaga, was granted under Section 214(1) of the Capital Markets and Services Act 2007, which gives the SC the power to approve an application related to corporate and equity-related transactions.

Puncak Niaga said the acquisition of TRIplc is subject to certain terms and conditions, which include the latter achieving an audited after-tax profit of at least RM6 million in the financial year ended May 31, 2017 (FY17), prior to the commencement of the said acquisition.

A check with the Bursa Malaysia website revealed that TRIplc reported an unaudited net profit of RM10.63 million in FY17.

To recap, Puncak Niaga had on Dec 16, 2016 announced it had inked a heads of agreement to acquire TRIplc, a related-company.

Both Puncak Niaga and TRIplc are controlled by tycoon Tan Sri Rozali Ismail. He has a 33.59% stake in Puncak Niaga and 26.84% in TRIplc, as at Dec 16, 2016.

In December 2016, Puncak Niaga inked a conditional share sale agreement with Pimpinan Ehsan Bhd to acquire its stake in TRIplc for RM210 million cash.

According to Puncak Niaga, TRIplc is valued by independent adviser FHMH Corporate Advisory Sdn Bhd to be worth between RM191.53 million and RM230.31 million.

Pimpinan Ehsan is a new investment holding company that will be taking over TRIplc's listing status on the Main Market of Bursa Malaysia after a proposed internal reorganisation at TRIplc, which will see TRIplc becoming a wholly-owned unit of Pimpinan Ehsan.

To effect the internal reorganisation, TRIplc has proposed a share exchange with Pimpinan Ehsan, which will see the shares of the company exchanged on a one-to-one basis with new Pimpinan Ehsan shares of RM1 each.

Puncak Niaga will fund the proposed buy, which it expects to be completed by the second half of 2017, via internal funds or borrowings.

At 4:15pm, Puncak Niaga shares rose five sen or 6.99% to trade at 76.5 sen, for a market capitalisation of RM343.72 million.

Meanwhile, TRIplc shares was up 35 sen or 21.21% to trade at RM2, valuing it at RM137.27 million.

 

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