Rohas Technic to buy 75% of power lines firm

PETALING JAYA: Loss-making Rohas Technic Bhd plans to buy a 75% stake in HG Power Transmission Sdn Bhd for RM91.66 million in cash and shares to expand its existing business in the power and telecommunication industries.

Rohas Technic plans to issue new shares at 95 sen apiece. The RM22.5 million cash portion will be funded internally. Rohas Technic’s share price was unchanged at RM1.15 yesterday, with 209,200 shares traded.

The deal will see the entry of vendors PT Safe Tower Systems Sdn Bhd and Kemuncak Agresif (M) Sdn Bhd as substantial shareholders in Rohas Technic with a combined 15.4% interest. They will hold the most shares after prominent businessman Tan Sri Wan Azmi Wan Hamzah, should the deal go through.

HG Power is a Malaysia-based engineering, procurement, construction and commissioning company which has been involved in the construction of more than 4,700km of transmission lines in Malaysia and overseas, with design capability for transmission lines of up to 500kV and substations of up to 275kV.

HG Power has been profitable in the last three financial years and recorded revenue of RM211 million and profit after tax of RM10.2 million for the financial year ended December 2016.

Rohas Technic posted a net loss of RM20.3 million on revenue of RM53.25 million in the first quarter ended March 31, 2017.