Thursday 28 Mar 2024
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KUALA LUMPUR (July 29): AWC Bhd has proposed to acquire the entire equity interest in Qudotech Sdn Bhd and DD Techniche Sdn Bhd (DDT) for a total consideration of RM26.5 million.

In its filing with the bourse, AWC (fundamental: 2.8; valuation: 1.1) said it entered into a conditional share sale agreement with vendors Tan Siew Kheng, Chee Kar Ming, Tan Lay Kuen and Soo Chow Mei for their interests in the companies.

AWC said the purchase consideration will be satisfied by a combination of cash and issuance of new ordinary shares.

“The proposed acquisition will provide the AWC Group with the opportunity to expand its existing suite of engineering and facility management services to include the businesses of the target companies, being one of the leading providers of plumbing services and rainwater harvesting solutions in Malaysia,” it said.

The company added that the acquisition will enhance its competitiveness when tendering for projects in both the private and public sectors.

AWC expects the proposed acquisition to improve its earnings going forward, based on the existing secured contracts of Qudotech worth RM66.11 million, and a profit guarantee of RM7.8 million for the 24 months ending June 30, 2017 by the vendors.

AWC gained 3.5 sen or 8.97% to close at 42.5 sen, for a market capitalisation of RM87.89 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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