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- It received approval from the Public Private Partnership Unit of the Prime Minister’s Department (Ukas) to buy a 45% stake in Seri Delima Anggun Sdn Bhd (SDASB) and 100% in Serata Ehsan Sdn Bhd (SESB), in contrast to its initial plan to wholly purchase both companies.
KUALA LUMPUR (Sept 25): Construction firm Gagasan Nadi Cergas Bhd (KL:NADIBHD) said it has received government approval to acquire only a majority stake, and not a 100% stake, in Konsortium PAE Sepakat Sdn Bhd (KPSSB), which owns a facility management concession for student hostel facilities in seven polytechnic campuses.
It received approval from the Public Private Partnership Unit of the Prime Minister’s Department (Ukas) to buy a 45% stake in Seri Delima Anggun Sdn Bhd (SDASB) and 100% in Serata Ehsan Sdn Bhd (SESB), in contrast to its initial plan to wholly purchase both companies, in turn wholly acquiring the concession, according to a bourse filing on Thursday.
SESB holds a 44.4% stake in KPSSB, while SDASB holds the remaining 55.6%.
At the approved equity stake, Gagasan Nadi will control 69.75% of KPSSB.
Gagasan Nadi said with the approval for only a partial stake buy in SDASB, the remaining 55% stake—representing 30.25% in KPSSB—will continue to be held by a Bumiputera shareholder.
“In view that Ukas has approved the acquisition of only 45% equity interest in SDASB instead of 100% equity interest as originally proposed, the board will deliberate on the implications of Ukas’ decision and determine the appropriate next steps with regards to the proposed acquisitions and a further announcement will be made in due course,” Gagasan Nadi said.
According to the originally proposed deal, the company was to buy SESB for RM80 million from Chong Ngu Chong and Lim Eng Keong, and SDASB from Zulkifli Abdul for RM105 million.
KPSSB had in 2013 secured concession agreements to develop and maintain student hostels at campuses in Banting, Ipoh, Port Dickson, Johor Bahru, Seberang Prai, Jeli and Kota Bharu until 2036. Each polytechnic campus is supported by a special purpose vehicle fully-owned by KPSSB.
The deal is envisioned to enhance Gagasan Nadi's existing concession and facility management operations, which comprise facility management concessions for student accommodation facilities at the International Islamic University Malaysia in Kuantan and the Universiti Teknikal Malaysia Melaka in Melaka.
Shares in Gagasan Nadi ended half a sen or 1.27% lower at 40 sen on Thursday, valuing the company at RM297.44 million.
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