Friday 29 Mar 2024
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KUALA LUMPUR (July 10): MTD ACPI Engineering Berhad has proposed to acquire two construction and property units from privately-held Putrajaya Perdana Bhd, prompting speculation that a reverse takeover by the latter could be in the offing further down the road.

Even so, it is early days yet as only a Heads of Agreement (HoA) has been inked with Putrajaya Perdana and its wholly-owned subsidiary, Putra Perdana Development Sdn Bhd, for the acquisitions of Orangebeam Construction Sdn Bhd and Orangebeam Development Sdn Bhd. The purchase consideration has also yet to be determined, MTD ACPI said in an exchange filing today.

Should MTD ACPI and Putrajaya Perdana not execute the shares sale and purchase agreements within the agreed specified period, the HoA would be terminated.

MTD ACPI is principally involved in the construction of infrastructure, erosion control, as well as in the manufacturing of precast concrete products for infrastructure and buildings.

Its largest shareholders as at June 30, 2018 are MTD Equity Sdn Bhd and Alloy Capital Sdn Bhd with a 38.1% stake and 17.01% stake respectively.

Putrajaya Perdana is 70% controlled by Datuk Rosman Abdullah via Cendana Destini Sdn Bhd, with the remainder 30% owned by Lembaga Tabung Haji. The company was previously listed before it was taken private in December 2010 by Petro Saudi International.

Its unit Putra Perdana Development is involved in property development and property management. Rosman sits on the board of directors of both companies.

In 2016, The Edge Malaysia Weekly, citing industry sources, said that Putrajaya Perdana was believed to have chosen MTD ACPI as its vehicle for a backdoor listing exercise.

More recently, Rosman has come under the spotlight after he was questioned in July 2015 by the Malaysian Anti-Corruption Commission (MACC) as part of its investigations into 1Malaysia Development Bhd (1MDB) and its subsidiary SRC International Sdn Bhd.

Cendana Destini took over Putrajaya Perdana from UBG Bhd in 2012. Two years earlier, Petro Saudi International and fugitive businessman Low Taek Jho acquired the two companies as well as water infrastructure company Loh & Loh Corp Bhd  in three privatisation exercises that were valued at RM1.4 billion.

Shares in MTD ACPI slipped one sen today to close at 17 sen for a market capitalisation of RM39.38 million.

The company incurred a net loss of RM4.78 million in its financial year ended March 31, 2019, on the back of RM249.82 million revenue.

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