GEORGE TOWN (Sept 28): Penang-based Pentamaster Corp Bhd is proposing to acquire Origo Ventures (M) Sdn Bhd, a property project management company, for RM5.78 million.

In its filing to Bursa Malaysia today, Pentamaster, provider of the automation solutions to manufacturing industries globally, said that it has entered into a sale and purchase agreement to acquire two ordinary shares, representing a 100% stake in Origo from Sulaiman Ahmad and Sabariah Ahmad.

"Origo is headed by an experienced general manager that has more than 14 years of architecture and property project management experience that span across major Malaysian property companies, namely Sunway Bhd, TRC Development Sdn Bhd, Talam Corporation Bhd and IOI Properties Bhd," said Pentamaster.

On April 15 this year, Origo was awarded a project finance and management contract by Maarij Development Sdn Bhd for the project management of a mixed development project in the new township of Tunjong, Jajahan Kota Bharu, Kelantan, measuring about 9.88 acres.

The gross development value for the development is approximately RM164 million, and the total remuneration for the project management agreement shall equate to 60% of the net profit generated from the development.

To date, Origo has an outstanding billing of approximately RM3 million to Maarij, upon the completion of stages of work done.

The proposed acquisition is expected to be financed through Pentamaster's internally generated funds, and is in line and synergistic with the objective of the group to venture into Smart Home and Building Solutions.

Upon the completion of the proposed acquisition, the group also stands to gain financially from Origo's existing contract, it said.

Pentamaster's shares closed at 79 sen today, down one sen or 1.25%, arriving at a market capitalisation of RM105.26 million.

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