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- The move, which forms part of an intra-group restructuring exercise, will allow SunCon to streamline operations and sharpen its focus on core construction and related services, SunCon said.
KUALA LUMPUR (Sept 12): Sunway Construction Group Bhd (KL:SUNCON) is divesting its entire 40% stake in Engie-Sunway DCS Sdn Bhd to Sunway Bhd’s (KL:SUNWAY) facilities management arm, Sunway Property & Facility Management Sdn Bhd (SPFM), for RM10.98 million cash.
The move, which forms part of an intra-group restructuring exercise, will allow SunCon to streamline operations and sharpen its focus on core construction and related services, SunCon said in a bourse filing on Friday.
At the same time, Sunway’s facilities arm will be able to strengthen its recurring income streams by integrating the district cooling system project into its portfolio, Sunway said in a separate filing.
SunCon said the transaction, undertaken at cost, is a strategic divestment that reallocates resources towards areas where the group holds stronger competitive advantages.
SPFM, a wholly-owned unit of Sunway City Sdn Bhd, which in turn is wholly owned by Sunway, said the acquisition aligns with its long-term expansion plans and enhances service efficiency in facilities management.
Engie-Sunway is currently jointly owned by ECM Cooling Sdn Bhd (60%) and Sunway SK Sdn Bhd (40%), which is an indirect subsidiary of SunCon. Its principal activities are engineering, financing, construction, operation and maintenance of district cooling systems for Sunway’s South Quay Commercial Precinct 2 development.
Sunway holds a 53.5% stake in SunCon via Sunway Holdings Sdn Bhd.
The disposal is not expected to have a material effect on SunCon’s earnings for the financial year ending Dec 31, 2025.
The proceeds from the proposed disposal, SunCon said, will be utilised to fund the company’s general working capital requirements.
The disposal is expected to be completed by the fourth quarter of 2025.
Shares in SunCon closed 10 sen or 1.55% lower at RM6.36 on Friday, valuing the company at RM8.38 billion. Sunway shares were up two sen or 0.38% at RM5.31, with a market capitalisation of RM33.3 billion.
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