R&A Telecom­mu­ni­ca­tion to buy stake in con­struc­tion firm

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: R&A Telecom­mu­ni­ca­tion Group Bhd, a Guid­ance Note 3 (GN3) com­pany, which is buy­ing time to sub­mit its reg­u­lar­i­sa­tion plan, pro­poses to ac­quire the en­tire stake in Syn­ergy Goldtree Sdn Bhd (SGSB) for an undis­closed amount.

The com­pany had re­quested for a time ex­ten­sion from Bursa Malaysia to sub­mit its re­struc­tur­ing plan, which was sup­posed to be sub­mit­ted by Sept 4.

The reg­u­la­tor vide its let­ter dated Sept 5, how­ever, re­jected the com­pany’s ap­pli­ca­tion to have un­til Sept 30 to make the req­ui­site an­nounce­ment and to sub­mit the reg­u­lar­i­sa­tion plan by Oct 31.

R&A sub­se­quently sub­mit­ted an ap­peal ap­pli­ca­tion to Bursa Malaysia, but is yet to be no­ti­fied of its de­ci­sion.

In a fil­ing with the stock ex­change yes­ter­day, R&A said it had en­tered into a mem­o­ran­dum of un­der­stand­ing with the ven­dors in re­spect of the ac­qui­si­tion of SGSB.

SGSB is in­volved in the con­struc­tion in­dus­try as a civil and build­ing con­trac­tor. It has se­cured con­struc­tion con­tracts with a to­tal value of about RM839 mil­lion (of which RM784 mil­lion has yet to be billed) as at July 31, 2016.

R&A and the ven­dors have jointly agreed to com­mence dis­cus­sions and ne­go­ti­a­tions.

The ven­dors shall guar­an­tee a profit af­ter tax of at least RM17.5 mil­lion per fi­nan­cial year to be achieved by SGSB for the suc­ces­sive two full fi­nan­cial years upon the com­ple­tion of pro­posed reg­u­lar­i­sa­tion scheme.

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