PETALING JAYA: GDB Holdings Bhd saw its share price rise as much as 1.67% this morning after announcing its proposed acquisition of 70% stake in construction contractor Eco Geotechnics Sdn Bhd.
At midday, the stock was 1.67% or half sen higher at 30.5 sen, from its 30 sen closing price yesterday. A total of 496,100 shares were traded.
In a filing with Bursa Malaysia yesterday, GDB said it, and its wholly owned subsidiary Grand Dynamics Builders Sdn Bhd have entered into a binding term sheet with Goh Eng Ngai, Wong Choo Keong and Tan Loo Loo in relation to the proposed acquisition.
“The proposed acquisition will enable GDB to venture into the piling business, to expand its customer base and to create opportunities with an added scope of jobs the group can tender for,” it said.
“The proposed acquisition will also enhance the group’s prospects when tendering for jobs which involve sub-structure works as well as to create opportunities in securing superstructure works where contract owners call for separate sub-structure and superstructure tenders for a project,” it added.
Eco Geotechnics is principally involved in providing services as a construction contractor specialising in geotechnical and foundation engineering works.