GFM buys 100% stake in Atmajaya for RM9mil


KUALA LUMPUR: GFM Services Bhd has proposed to acquire a 100%-stake in Atmajaya Arvino Sdn Bhd for RM9mil.

The integrated facilities management service provider, in a statement, said the acquisition would enable GFM to design, build, operate, and maintain a rest and service area (RSA) along the Kuala Lumpur-Karak Highway.

Atmajaya was awarded the approval by the Malaysian Highway Authority to construct and maintain the RSA in Karak, Bentong.

GFM said the upcoming RSA would feature a one-stop complex with facilities and amenities such as a food hall and restaurants, washrooms, prayer room, an agricultural retail hub (AgroBazaar), and two petrol stations.

A unique feature to be introduced is a designated lounge and parking area for truckers and bikers, known as a Truckers’ Centre, it added.

“This acquisition represents a strategic move for us to deepen our presence in the highway RSA business and tap into the growing demand for highway services in Malaysia. We have been exploring prospects in this sector and are excited about the potential benefits it brings. This aligns with our aim of expanding the group’s portfolio and increasing our income streams,” group managing director Ruslan Nordin said.

“At the same time, the AgroBazaar will provide a platform for local farmers and entrepreneurs to showcase their products to a larger audience. This project aligns with GFM’s aim to deliver quality facilities and services to customers while creating long-term value for not only the group’s shareholders, but also the community at large.”

GFM said the RSA would provide GFM with multiple recurring income streams from various sources, including retail rentals and operations of the petrol station.

The estimated development cost of the RSA is approximately RM40mil, which will be funded by GFM’s internally generated funds.

As of Dec 31, 2022, GFM has cash balances of RM98.9mil. The project is anticipated to commence in 2024 and to be completed in two years.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

UPDATE 3-BOJ keeps rates steady, hawkish board member dissents
Malaysia-China 11-month trade matches 2023 total trade, signalling strong recovery
MRCB drops 3.88% after withdrawing from KL-SG HSR bidding consortium
5G remains the focus for telco in 2024
Indonesian arm of Malaysia's Mr DIY drops on market debut
Advancecon shares dip 2% despite securing RM417.7mil contract
YTL Power, YTL Corp surge as MACC clears group of wrongdoing in 1BestariNet probe
Winstar Capital surges 40% on ACE Market debut
Bursa Malaysia opens lower, tracking Wall Street’s slump
Ringgit slips 0.4% against US dollar, opens mostly higher against other basket of currencies

Others Also Read