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PETALING JAYA (March 27): Exsim Hospitality Bhd is seeking shareholder approval to diversify its existing business to include construction works and centralised procurement activities, according to a circular issued today (March 27).
The proposed diversification comprises two new business segments:
*General contracting, covering construction works and related activities
*Centralised procurement, involving the sourcing of building materials and household appliances
Both initiatives are collectively referred to as the proposed diversifications, based on the company’s filing to Bursa Malaysia.
Expansion beyond existing core operations
The move marks a proposed expansion beyond Exsim Hospitality’s current core business, with the group indicating its intention to incorporate construction and supply chain-related functions into its operations.
In the same circular, the company also proposed a new shareholders’ mandate to allow for recurrent related party transactions of a revenue and/or trading nature, subject to shareholder approval.
Such mandates are typically sought to facilitate ongoing transactions within a group’s business ecosystem, particularly where operational integration involves related entities.
Shareholder approval required
Both the proposed diversifications and the proposed shareholders’ mandate will require approval from shareholders at an upcoming general meeting.
The circular provides details on the scope of the new business activities as well as the rationale for seeking the mandate for recurrent transactions.
Positioning for broader operational scope
The proposed entry into general contracting would enable the group to undertake construction-related activities, while the centralised procurement business is intended to cover the sourcing and supply of materials and appliances.
The filing did not specify financial projections or contribution targets for the new segments.
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