R&A Telecommunication to buy stake in construction firm

PETALING JAYA: R&A Telecommunication Group Bhd, a Guidance Note 3 (GN3) company, which is buying time to submit its regularisation plan, proposes to acquire the entire stake in Synergy Goldtree Sdn Bhd (SGSB) for an undisclosed amount.
The company had requested for a time extension from Bursa Malaysia to submit its restructuring plan, which was supposed to be submitted by Sept 4.
The regulator vide its letter dated Sept 5, however, rejected the company’s application to have until Sept 30 to make the requisite announcement and to submit the regularisation plan by Oct 31.
R&A subsequently submitted an appeal application to Bursa Malaysia, but is yet to be notified of its decision.
In a filing with the stock exchange yesterday, R&A said it had entered into a memorandum of understanding with the vendors in respect of the acquisition of SGSB.
SGSB is involved in the construction industry as a civil and building contractor. It has secured construction contracts with a total value of about RM839 million (of which RM784 million has yet to be billed) as at July 31, 2016.
R&A and the vendors have jointly agreed to commence discussions and negotiations.
The vendors shall guarantee a profit after tax of at least RM17.5 million per financial year to be achieved by SGSB for the successive two full financial years upon the completion of proposed regularisation scheme.