KUALA LUMPUR (Nov 11): PJ Bumi Bhd has proposed to acquire a 70% equity interest in Goldix Resources Sdn Bhd (GRSB) for RM16 million, in a move to enhance its existing construction business as well as improve its financial performance.

In a filing with Bursa Malaysia today, the multi-disciplinary engineering and construction services provider said it will pay for the acquisition by issuing 32 million new shares together with 10 million new warrants to the vendors, Panama Venture Sdn Bhd, Tanjung Setara Sdn Bhd and Veto Growth Sdn Bhd.

Meanwhile, PJ Bumi also proposed the issuance of five million warrants at no cost to the existing shareholders on the basis of one free warrant for every 10 existing shares.

GRSB is the master developer of a parcel of 165-acre piece of land at Mukim Serting Ilir in Negeri Sembilan, which is owned by the Federal Land Development Authority (Felda).

The land will be developed into a mixed development project in phases. It comprises 500 units of Perumahan Generasi Baru Felda house, 10 units of terrace factory, Felda’s staff quarters, community hall, sport complex and six units of community shop.

The RM98.3 million project is expected to commence in the first quarter of next year with an estimated construction period of three years.

“The project will enhance the group’s construction and engineering order book and is expected to provide the group with a steady revenue stream, which in turn is expected to contribute positively to the group’s future earnings,” said PJ Bumi.

“The project land has good development potential due to its close proximity to Bandar Sri Jempol and Bahau town. This will capitalise on the growth in property development in Malaysia,” it said.