Triplc, in midst of takeover by Puncak Niaga, building its order and tender books

SHAH ALAM: TRIplc Bhd, which is in the process of being taken over by related party Puncak Niaga Holdings Bhd, is in the midst of “building” its construction order book and tender book.
At present, the group has two ongoing concessions which entail the construction and maintenance of facilities and infrastructure in UITM’s Puncak Alam campus. The concession period for the two projects known as Z1P2 and ZIP3, is slated to go on for over two decades.
Beyond these concession jobs, the group concluded all of its construction jobs prior to its FY17.
As for revenue contributions for FY17 which ended May 31, a lion’s share of the total revenue amounting to RM70.91 million came from concession services.
The division contributed RM70.55 million to the total revenue whereas RM360,000 came from other divisions.
However, no contribution was noted from the construction division, which contributed RM340,000 in the previous year.
Speaking to reporters after the group’s AGM today, Triplc’s managing director Datuk Yusof Badawi said the company is currently “building” its construction tenderbook and orderbook.
“At the moment we are still concentrating on the concession business we have. That will keep us busy. (As for) construction, if there is opportunity we will go in,” Yusof said.
He added that the group’s focus in the last few years has been on its concession business.
Puncak Niaga had previously said that the rationale behind its acquisition of the entire issued share capital of TRIplc is to enhance the revenue stream of its construction segment.
As for its property development segment, TRIplc also holds a 3.63-acre land bank in Puncak Perdana, where it intends to develop a high rise residential property with an estimated gross development value of RM100 million. However, the group said that this is in “early stages” of planning.
Meanwhile, according to Yusof, TRIplc on its end is hoping to complete a corporate exercise which will see it become a subsidiary of investment holding company Pimpinan Ehsan Bhd, the transfer of its listing status to Pimpinan Ehsan and TRIplc’s subsequent disposal to Puncak Niaga by first quarter of next year. An EGM to gain shareholders approval for the exercise is to be convened within the first quarter of 2018.
The Securities Commission has approved Puncak Niaga’s planned acquisition of TRIplc from Pimpinan Ehsan for RM210 million cash.
Pimpinan Ehsan which will assume the listing status of TRIplc on the main board of Bursa Malaysia, will have to decide on a new core business for the company with the disposal of TRIplc, with the RM210 million cash it will receive as consideration for TRIplc.
“The newco will have 12 months to decide what the new core business will be and submit the proposal to the Securities Commission. The newco will end up with the money and the listing status,” Yusof said.