PETALING JAYA: Pansar Bhd expects Perbena Emas Sdn Bhd (PESB) to contribute long-term profitability to the group driven by the positive outlook in the construction and engineering sectors in Sarawak.
The group had in September last year announced that it entered into a conditional share purchase agreement with PE Holdings Sdn Bhd to acquire 100% equity interest in the issued share capital of PESB for a purchase consideration of RM151 million.
The company had later received the shareholders’ approval for the proposed acquisition on Dec 22 through an extraordinary general meeting. The acquisition serves as a strategic entry for the group into the construction industry, leveraging on PESB’s established track record.
At the time of the exercise in August 2020, PESB’s order book was at RM647.11 million. Following the award of new infrastructure projects as at February 2021, PESB has won an additional RM813 million of orders, taking the total outstanding order book to RM1.46 billion.
Pansar is of the view that the construction sector in Sarawak is expected to prosper over the next few years, driven by the RM22 billion in spending for infrastructure projects by the Sarawak government, including the Second Trunk Road, coastal road upgrades, water grid programs, rural electrification projects and telco towers.
Meanwhile, in a Bursa filing, Pansar has issued its abridged prospectus for the implementation of its renounceable rights issue of new redeemable convertible preference shares (RCPS) in Pansar, which will see the group raising approximately RM121 million to part-fund the group’s acquisition of the entire equity interest in PESB.
Pansar’s major shareholder Pan Sarawak Holdings Sdn Bhd, has provided its undertaking to subscribe for its entitlement under the rights issue, totalling 150.75 million RCPS.
The remaining 78,58 million RCPS representing approximately 34.26% of the total RCPS to be issued, will be underwritten by UOB Kay Hian Securities (M) Sdn Bhd. The issue price for the rights issue at 53 sen per RCPS represents a discount of approximately 27.4% to the closing price of Pansar shares of 73 sen as at March 5 and the RCPS carries a dividend rate of 4% per annum.
Pansarbelieves the construction sector in Sarawak will prosper over the next few years.
