KUALA LUMPUR: Fututech Bhd may see the injection of construction-related assets and order book by its major shareholder-cum-executive chairman Tee Eng Ho (pic), who holds a 72.18% stake in the company.

Fututech, which is currently a construction outfit, has requested that its securities be suspended from trading from 9am today pending a material announcement. 

According to sources, the suspension is pending the announcement of an assets injection exercise by Tee, comprising his privately held construction arm together with job order books. 

The size of the deal is said to be worth over RM300 million and entails mainly a share swap. 

“Through the exercise, Tee will be able to consolidate his privately held construction businesses into the listed vehicle, to make the entity bigger and more attractive for investors,” said a source.

Fututech (fundamental: 2.55; valuation: 1.2) is principally involved in construction, project management, interior fit-out business (including kitchen cabinetry and lighting solutions) and miscellaneous construction-related services for the premium residential property segment.

Most of Tee’s stake in Fututech is held indirectly via a private entity called Egovision Sdn Bhd, which he owns equally with his younger brother Eng Seng, who in turn has an indirect interest of a 69.62% stake in the group.

A minority portion of Tee’s indirect stake, which is equivalent to 2.56%, is due to his deemed interest by virtue of Tee’s wife Toh Siew Chuon, who holds the aforesaid shares directly.

Fututech appreciated five sen or 4.55% to RM1.15 yesterday, giving it a market capitalisation of RM99.81 million.

This article first appeared in The Edge Financial Daily, on February 6, 2015.