Minetech Resources to get new substantial shareholder with granite quarry buy

PETALING JAYA: Minetech Resources Bhd (MRB) plans to take a 60% interest in a granite quarry mining rights owner Bertam Capital Sdn Bhd (BRSB) for RM16.8 million, to be satisfied via issuance of new shares in MRB at 14 sen.
The deal will leave seller Bertam Roadbase Sdn Bhd (BRSB) with a 14.1% interest in MRB. MRB's share price closed up one sen at 15 sen, with some 13.0 million shares changing hands.
BCSB made a net profit of RM1.8 million against RM23.1 million revenue for the financial year ended Aug 31, 2017.
The MRB Group, which is principally involved in quarry operations and is currently operating quarries at Puchong, Selangor; Bidor, Perak; Pantai Remis, Perak; and Kuantan, Pahang until recently has been recording losses for its quarry segment since 2013.
It recorded profits for the six month financial period ended Sep 30, 2017.
Save for the quarry located in Puchong, Selangor where the MRB Group is acting as a subcontractor for the quarry owner, the MRB Group owns equity stakes in the other quarries.
Upon completion of the proposed acquisition, the MRB Group would be able to expand its geographical reach with BCSB’s quarry located in the state of Negeri Sembilan and contribute positively to the MRB Group. In addition, the MRB Group will be able to capitalise on BCSB’s existing customer network to market other products and services, such as its civil engineering services, asphalt premix products or bituminous products.
Chong Jun Heng, a director in MRB, is a minority shareholder in BRSB with a 9.52% shareholding, and has abstained from all deliberations regarding the deal.