KUALA LUMPUR (Feb 13): Tile manufacturer and property and construction group Seacera Group Bhd is buying a 70% controlling stake in builder Teras Sari Resources Sdn Bhd, which is undertaking a RM338.14 million project to upgrade the public road from Bandar Pekan to Kampung Sungai Miang in Pekan, Pahang.

"This proposed acquisition is a major leap for our internal target of securing a RM1 billion order book, which will keep us busy for the next three to five years, while we are getting the best value for our 500 acres of land. We envision that the construction business division shall be the main engine growth for Seacera going forward," Seacera group managing director Zulkarnin Ariffin said in a statement today.

In a filing with Bursa Malaysia, Seacera said its wholly-owned subsidiary Seacera Builders Sdn Bhd has entered into a heads of agreement (HoA) with LT Century Development Sdn Bhd and LTC Holdings Sdn Bhd for the proposed acquisition of 7.74 million shares or a 70% stake in Teras Sari Resources at a price to be determined later.

Seacera said it intends to issue new Seacera shares to settle the consideration shares.

“This proposed acquisition of Teras Sari Resources represents an excellent and strategic fit for our business, which will enable Seacera to expand its construction business significantly, driven by the RM338 million contract that Teras Sari Resources has in hand," Zulkarnin said.

"Apart from that, we have a recently announced a RM202 million mixed development project in Terengganu, as well as existing construction jobs worth RM35 million," he added.

Today, Teras Sari Resources accepted a letter of intent from the Public Works Department for the proposed RM338.14 million road upgrade project. 

At 3.54pm, Seacera shares were down 1.5 sen or 2.06% at 71.5 sen, with 309,100 shares done, giving it a market capitalisation of RM271.07 million.