KUALA LUMPUR: Glomac Bhd
is acquiring from its group executive chairman Tan Sri Mohamed Mansor Fateh Din and major shareholder Mohd Yasin Loh Abdullah 1.37 million shares in Glomac Bina Sdn Bhd, representing the remaining 49% stake it does not own, for RM16.25mil.
In a filing with Bursa Malaysia, Glomac said the purchase consideration is expected to be satisfied entirely from internally generated funds.
As at Jan 21, 2023, the group has fixed deposits and short-term placements as well as cash and bank balances of about RM248.2mil.
Following the successful completion of the acquisition, Glomac Bina, a building contractor, will become a wholly-owned subsidiary of the group.
Glomac said the proposed acquisition will enable it to streamline its group structure and gain 100% control of Glomac Bina to be in the position to drive the future strategic direction of the company.
The group expects that with the increase of future projects launched and planned, Glomac Bina is expected to provide more construction services (via inter-segment transactions as well as services provided to external customers), which will further increase the revenue of the group.
"Barring any unforeseen circumstances, the Board believes that the Proposed Acquisition may potentially augur well for the future growth prospects of the Glomac Group," it added.
