KUALA LUMPUR, Sept 15, 2015:
Construction and property development company, Fututech Bhd has entered into conditional share sale agreements to acquire the entire equity interests in Kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn Bhd for RM458 million.
In a statement today, the company said it had proposed to acquire Kerjaya Prospek for RM438 million.
The acquisition will be funded through RM35.2 million in cash, RM42.8 million via the issuance of Fututech shares at an issue price of RM1.16 per share and RM360 million via the issuance of new redeemable convertible preference shares (RCPS) of 50 sen each in Fututech at an issue price of RM1.16 per RCPS.
Meanwhile, Fututech is acquiring of Permatang Bakti for RM20 million cash.
“The proposed acquisition, once concluded, will present Fututech with an enlarged construction orderbook of about RM2.86 billion. This will in turn enhance the company’s financial performance moving forward,” said Fututech executive chairman Datuk Tee Eng Ho.
Fututech’s current orderbook stands at RM121 million while the combined orderbook of Kerjaya Prospek and Permatang Bakti is RM2.74 billion.
Kerjaya Prospek is principally engaged in building construction and is owned by Tee (25%) and its executive directors Datin Toh Siew Chuon (25%) and Tee Eng Seng (50%).
Permatang Bakti is also principally engaged in building construction and is jointly held by Tee (75%) and Toh (25%).
Fututech has also announced a proposed private placement of 100 million new shares at an issue price to be determined and investors to be identified at a later stage.