Rohas Technic to buy 75% in EPCC player HG Power for RM91.66m

PETALING JAYA : Loss making Rohas Technic Bhd plans to buy a 75% stake in HG Power Transmission Sdn Bhd for RM91.66 million in cash and shares, to expand its existing business in the power and telecommunication industries.

It plans to issue new shares in the group at 95 sen a piece. The RM22.5 million cash portion will be funded internally. Rohas Technic's share price closed unchanged at RM1.15, with some 209,200 shares changing hands.

The deal will see the entry of vendors, PT Safe Tower Systems Sdn Bhd (PTSTS) and and Kemuncak Agresif (M) Sdn Bhd, as substantial shareholders in Rohas Technic with a 15.4% interest. It will hold the most shares after prominent businessman Tan Sri Wan Azmi Wan Hamzah, should the deal go through.

HG Power is a Malaysia- based engineering, procurement, construction and commissioning company which has been involved in the construction of more than 4,700 kilometres of transmission lines in Malaysia and overseas, with design capability for transmission lines of up to 500 kilo volts and substations of up to 275 kilo volts.

It has been profitable in the last three financial years and for FYE 31 Dec 2016, recorded a revenue of RM211 million and a profit after tax of RM10.2 million. Rohas Technic in the first quarter ended March 31, 2017 registered a net loss of RM20.3 million on revenue of RM53.25 million.