Serba Dinamik’s shares up on shares acquisition announcement
KUALA LUMPUR: Serba Dinamik Holdings Bhd’s shares rose in the morning session yesterday after the company announced a share sale and purchase agreement with OHP Ventures Sdn Bhd to acquire a 49 per cent stake in OHP Ventures Incorporated for about RM3.3 million.
Public Investment Bank in a research note yesterday said the move is in line with the company’s strategy to further expand its business into the asset ownership model, besides developing its engineering, procurement, construction and commissioning portfolio and capabilities.
“The acquisition will solidify Serba Dinamik’s presence in Laos,allowing the company to participate in more projects in the future,” it added.
It said OHP Ventures, through its 70 per cent stake in Nam Taep 1.2.3 Hydropower Co Ltd (Nam Taep), had a joint development agreement to develop, finance, construct, commission, operate and maintain two mini hydro installations with an aggregate capacity of 30 Megawatt (MW) in Houaphan, Laos, via two concessions.
The investment bank said currently, Serba Dinamik’s had three hydropower plant projects in hand with a combined capacity of 120MW, in Kota Marudu, Sabah (30MW), Perak (60MW) and Laos (30MW).
“We believe the company will secure more hydro-based projects and is on track to achieving its 200MW target by year-end,” it said.
It added that this would also help the company to hit a targeted RM7.5 billion outstanding orderbook by end-2018.
The investment bank has reaffirmed an ‘ outperform’ rating for Serba Dinamik and maintained a target price of RM4.69 per share. — Bernama