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KUALA LUMPUR (April 10): Property outfit Axteria Group Bhd (KL:AXTERIA) said it has proposed to acquire an 80% stake in Niaga Sari Sdn Bhd (NSSB) for RM35 million in cash, as part of efforts to strengthen its construction capabilities and support its property development activities.
In a filing on Thursday, Axteria said it had entered into a conditional share sale agreement with a collective of six vendors, including Datuk Chan Chee Hong, to acquire 800,004 shares in NSSB, representing 80% equity interest.
Upon completion, NSSB will become a subsidiary of Axteria.
Axteria said the purchase consideration of RM35 million was arrived at on a willing-buyer-willing-seller basis, taking into account NSSB’s order book of RM567.4 million and a profit guarantee of RM9.2 million over two years. This implies a price-to-earnings multiple of about 9.5 times.
The other named vendors in the agreement were Gwi Chin Fatt, Datuk Wong Gian Kui, Periasamy Ganapathy, Gwi Xian Yi, Gwi Huan Yi and Chan Khai Young.
Under the agreement, RM5 million will be paid upfront, while the remaining RM30 million will be placed in an escrow account, tied to the fulfilment of the profit guarantee.
NSSB, incorporated in 1985, is principally engaged in building construction and has completed projects with a total value of about RM1 billion as at the latest practicable date, ranging from factories to high-rise residential developments.
The company currently has two ongoing projects and one upcoming project with a combined value of RM567.4 million, including apartment developments in Kelantan and Kuala Terengganu.
For the financial year ended June 30, 2025, NSSB recorded a net loss of RM2.13 million, while its net assets stood at RM12.33 million.
AGB said the acquisition is expected to complement its existing property development and management business, allowing the group to better support its expansion through joint ventures and land acquisitions.
The group added that the move aligns with its strategy to pursue growth opportunities without significant upfront capital commitments, while leveraging NSSB’s existing order book to support earnings.
Barring unforeseen circumstances, Axteria said the proposed acquisition is expected to contribute positively to its future financial performance.
At Thursday’s closing, Axteria’s shares were unchanged at nine sen. At its last price, the group has a market value of RM71 million.
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