KUALA LUMPUR: Seacera Group Bhd's wholly-owned Seacera Builders Sdn Bhd today entered into a heads of agreement (HOA) with LT Century Development Sdn Bhd and LTC Holdings Sdn Bhd for the acquisition of 70 per cent equity interest in Teras Sari Resources Sdn Bhd (TSR) for a purchase price which is to be determined at a later date.
TSR had also today received and accepted a Letter of Intent (LOI) from Jabatan Kerja Raya Malaysia for the project 'Menaiktaraf Jalan Persekutuan (FT003) Dari Bandar Pekan ke Kampung Sungai Miang, Pekan, Pahang' valued at RM338.14 million.
"This acquisition by TSR represents an excellent and strategic fit for our business, which will enable Seacera to expand its construction business significantly, driven by the RM338 million contract that TSR has in hand,” said Seacera group managing director Zulkarnin Ariffin in a statement.
"Apart from that, we have a recently announced RM202 million mixed development project in Terengganu as well as existing construction jobs worth RM35 million.
"This acquisition is a major leap for our internal target of securing a RM1 billion order book, which will keep us busy for the next three to five years while we are getting the best value for our 500 acres of land," he said.
TSR is a construction company principally engaged in water, building construction and civil engineering work.
Zulkarnain then added that the construction business division shall be the main engine growth for Seacera going forward.
The purchase price will only be determined prior to entering into a conditional share sale agreement.
The group is also planning to issue new Seacera shares at an issue price to be determined later.
Keywords: Seacera, Teras Sari Resources, Zulkarnin Ariffin