Gets Global buys 79% stake in public transport service provider

PETALING JAYA: Gets Global Bhd is acquiring a 79.99% stake in Pengangkutan Awam Putrajaya Travel & Tours Sdn Bhd (PAPTT) for RM1.
The group told Bursa Malaysia that its wholly-owned subsidiary Konsortium Bas Ekspres Semenanjung (M) Sdn Bhd (KBESM) today entered into a share sale agreement (SSA) with Putrajaya Leisures & Services Group Sdn Bhd (Pulse group). The signing follows a memorandum of understanding struck between the two companies in October.
PAPTT is a public transport service provider in Putrajaya and is supported by over 170 buses. Its services include Putrajaya city bus services for internal and external routes, bus rental and bus leasing.
PAPTT also manages the Putrajaya Sentral Terminal, Putrajaya Park & Ride and car parks in various locations in Putrajaya. PAPTT is jointly-owned by Perbadanan Putrajaya and Pulse group.
PAPTT reported a net loss of RM4.9 million for the financial year ended Dec 31, 2016. KBESM will assume liabilities amounting to RM4.97 million following the proposed acquisition, which will be funded via Gets Global’s internally generated funds.
Gets Global noted that the acquisition will provide the group with an opportunity to venture into city bus services, which is a new sustainable business to complement its existing business activities of express bus services, new bus sales and repair and maintenance services.
It will also further unlock the potentials of the other business activities under PAPTT including property management (Putrajaya Sentral Terminal, Park & Ride Complex and carparks), advertising (mobile and outdoor) and travel and tours to generate new significant revenue stream for PAPTT.
“The board expects the proposed acquisition to contribute positively to the group’s future earnings and earnings per share,” said Gets Global.
Its share price rose 1.5 sen or 7.5% to close at 21.5 sen today on some 112,000 shares done.