KUALA LUMPUR, July 31 — Stella Holdings Bhd has entered into a conditional share sale agreement to buy 100 per cent of Pembinaan Teguh Maju Sdn Bhd (PTM) for RM380 million.
In a filing with Bursa Malaysia today, the construction and property investment company said the proposed acquisition of one million ordinary shares in PTM was inked with the vendors Datuk Lau Beng Wei, Datuk Lau Beng Sin, Teo Boon Hing, Datuk Shanmuga Indran, Pang Fong Mui, Lee Chee Kiang, Datuk Ang Hung Teck and Loh Khoon Chiang.
It will be satisfied via a cash consideration of RM100 million and the issuance of 350 million Stella shares at an issue price of 80 sen per share.
The company also proposed to undertake a private placement of up to 50 million new ordinary shares, representing approximately 11.99 per cent of Stella’s issued shares post-acquisition.
The filing said the proposed private placement, among others, will enable it to raise additional funds for the proposed acquisition, funding existing and future projects as well as strengthen its equity base.
“The proposed acquisition is in line with Stella Group’s immediate strategy to improve its financial performance by accelerating its growth plans for the construction sector which has been lacklustre in recent years.
“The management of Stella views PTM to be a strategic fit and complements Stella Group as PTM’s strength is in securing contracts involving civil engineering jobs, roadworks, infrastructure works, building construction and maintenance projects as well as mechanical and electrical works,” it said.
Stella has an issued share capital of RM31.71 million comprising 67 million shares as of June 30, 2023. — Bernama
