Rohas Tecnic Bhd (RTB) has entered into a conditional share sale agreement (SSA) with PT Safe Tower Systems Sdn Bhd (PTSTS) and Kemuncak Agresif (M) Sdn Bhd (KAMSB) for the proposed acquisition of 4.9 million shares in HG Power Transmission Sdn Bhd (HGPT), representing a 75 per cent stake at a purchase consideration of RM114.16 million.
In an exchange filing today, the investment holding company said 4.9 million shares in HGPT for a purchase consideration of RM91.66 million would be satisfied via the allotment and issuance of 72.8 million RTB’s shares at an issue price of RM0.95 per RTB Share and RM22.5 million in cash.
It noted that PTSTS and KAMSB owns 50.1 per cent and 24.9 per cent stake in HGPT.
RTB said the proposed acquisition is a strategic move to expand the company and complement its existing product and services within the power and telecommunication industries, in which it mainly operates.
“After completion of the proposed acquisition, the enlarged RTB Group will become a one-stop fabrication base and turnkey solutions provider for the provision of fabrication of power transmission and telecommunication steel towers, and construction of transmission lines in Malaysia and the Asean region,” it said.
RTB added the proposed acquisition will enable the company to gain access to the entire value chain of the power transmission industry, thereby increasing its negotiation strength when bidding for and securing new projects.
“The enlarged RTB group is expected to be able to capitalise on initiatives and development plans by the Malaysian government and governments of other regional countries for their power and telecommunications industries,” it said.