Sunsuria proposes diversification into construction

PETALING JAYA: Sunsuria Bhd, which is involved in property development and investment, is proposing to diversify its existing principal activities of property development to include construction and related businesses.
“The board anticipates the construction and related businesses may in the future contribute 25% or more of the net profits of Sunsuria group and/or result in a diversion of more than 25% of the net assets of Sunsuria group. The board proposes to seek the approval of shareholders of Sunsuria for the exercise, at an AGM to be convened,” Sunsuria said.
It intends to secure construction projects to provide for greater business expansion and sound financial growth for the group.
The exercise will be undertaken through its 51% indirect subsidiary Sunsuria Asas Sdn Bhd (SASB) and joint venture company Citic Sunsuria Sdn Bhd (CSSB), wherein Sunsuria will be able to leverage on the proven track record, engineering expertise, technical sophistication and resources of the strategic partners – Spanway Construction Sdn Bhd and Citicc International Investment Ltd (CITIC).
The investment in SASB and the joint venture with CITIC through CSSB by Sunsuria group serve as the entry point and is part of the group’s expansion efforts into the construction and related businesses.
After obtaining approval from the company’s shareholders for the exercise, Sunsuria group will strive to identify and assess new opportunities to secure more contracts.
“The board is positive on the outlook of the construction and related businesses, which is expected to enhance Sunsuria group’s financial performance and shareholders’ value. The diversification into the new businesses augurs well for the group. It is the intention of the group to expand and bolster the construction and related businesses including potential listing of the construction division of the group when appropriate,” it added.