KUALA LUMPUR (Oct 4): Selangor Dredging Bhd’s wholly-owned subsidiary SDB Mining Sdn Bhd, formerly known as SDB Connect Sdn Bhd, is acquiring an additional 130,000 shares, representing a 13% equity interest in Webcon Mining Sdn Bhd (WMSB) for RM24.37 million, according to its filing with Bursa Malaysia.

WMSB is involved in the mining, extraction, excavation, and sale of iron ore in Bukit Besi, Terengganu.

In a bourse filing this evening, Selangor Dredging has signed a share sale agreement with Greger International Sdn Bhd for the share purchase.

“If the proposed acquisition is duly completed, the purchase consideration will be funded by internally-generated funds,” said Selangor Dredging in the filing.

It added that upon completion of the proposed acquisition Selangor Dredging’s stake in SDB Mining share will increase to 35% from 22% currently.

The completion date for the proposed acquisition shall take place on the date of first payment of RM10.12 million on Oct 13, while the date of full payment of the balance purchase price of RM14.25 million shall be paid in four installments starting from Nov 4, 2017 and final payment is on Feb 4, 2018.

In early May, Selangor Dredging announced it is buying a 20% equity interest in WMSB for some RM20 million.

Selangor Dredging said the acquisition represents a strategic entry for the company into the mining sector.

“It is part of the group’s strategic expansion and diversification into other sectors. It will not have any effect on the share capital, substantial shareholdings, earnings, gearing and net assets,” said the statement.

Selangor Dredging’s share price dropped one sen to RM1.12 with barely 19,000 shares changing hands, for a market capitalisation of RM477.26 million. Year to date, the counter has gained about 31%.