FARAH ADILLA
KUALA LUMPUR: HSS Engineers Bhd (HEB) today announced that it is acquiring the entire stake in SMHB Engineering Sdn Bhd for RM270 million.
The acquisition paves way for HEB Group to strengthen its engineering consulting space in the water infrastructure sector.
The purchase consideration of RM270 million entails RM162 million cash, and RM108 million worth of HEB Group shares issuances to the vendors.
The cash consideration will be raised from a 50:50 combination of bank borowings, and placement and rights issue.
HEB executive director Tan Sri Kuna Sittampalam said the enlarged entity would have a substantial combined orderbook of nearly RM740 million.
“The signing of the HOA (heads of agreement) unites two leading powerhouses of the engineering consultancies in the country.
“Our combined size, engineering skills and track record will expand our scope of services as well as enhance the value proposition to clients,” he said in his speech after the signing ceremony here today.
The purchase price of RM270 million is at an enterprise value over EBITDA of 7.7 times.