KUALA LUMPUR, July 18 — Siab Holdings Bhd has undertaken the proposed acquisition of two million ordinary shares in Taghill Projects Sdn Bhd, representing 100 per cent of the equity interest, for RM122 million.
Taghill is a project and contract management consultancy company that completed its first construction project, Expressionz Suites, in 2018.
In a Bursa Malaysia filing today, the construction company stated that it will be fully satisfied through a combination of a cash payment of RM96 million and RM26 million via the issuance of its shares at an issue price of RM0.13 each.
“The proposed acquisition forms part of the group’s long-term business expansion and growth strategy. It will enable both companies to leverage their combined strengths and expertise in the construction industry, as well as their respective business relationships with various industry stakeholders.”
“The proposed acquisition represents a strategic opportunity for the company to further strengthen its remaining order book to approximately RM1.71 billion post-acquisition, given that Siab’s and Taghill’s current unbilled order book stood at RM280.53 million and RM1.43 billion respectively,” it said.
M&A Securities Sdn Bhd has been appointed as the principal adviser for the proposals, while Eco Asia Capital Advisory Sdn Bhd has been appointed as the financial adviser and independent valuer.
“Barring any unforeseen circumstances and subject to all approvals being obtained, the proposals are expected to be completed by the fourth quarter of this year,” it said.
Siab also announced a renounceable rights issue of 919,512,111 new shares, together with 459,756,056 free detachable warrants, on the basis of four rights shares for every three existing shares held on an entitlement date to be determined later, together with one warrant for every two rights shares subscribed.
Siab said the approval of its shareholders for the proposals at an extraordinary general meeting to be convened is required. — Bernama
