GFM Services to acquire Atmajaya Arvino, develop highway rest area

KUALA LUMPUR: Integrated facilities management service provider GFM Services Bhd today proposed to acquire 100%-stake in Atmajaya Arvino Sdn Bhd for a purchase consideration of RM9 million.

The acquisition will enable GFM to design, build, operate, and maintain a Rest & Service Area (RSA) along the Kuala Lumpur-Karak Highway, a major link from the capital city to Pahang and Terengganu in the East Coast.

Atmajaya was granted approval by the Malaysian Highway Authority to construct and maintain the RSA in Karak, Bentong.

GFM group managing director Ruslan Nordin said, “This acquisition represents a strategic move for us to deepen our presence in the highway RSA business and tap into the growing demand for highway services in Malaysia. We have been exploring prospects in this sector and are excited about the potential benefits it brings. This aligns with our aim of expanding the gGroup’s portfolio and increasing our income streams.”

The RSA is strategically situated at Km68.7, where motorists from both the East Coast Expressway and the Karak-Tampin Highway will pass through en route to Kuala Lumpur. Based on traffic study, the traffic volume in 2023 is projected to be 10.4 million vehicles anually, and it is expected to grow in the years ahead.

The estimated development cost of the RSA is RM40 million, which will be financed with GFM’s internally generated funds. As of Dec 31, 2022, GFM has a cash balance of RM98.9 million. The project is anticipated to begin in 2024 and be completed in two years.