Meta Bright to acquire 70% stake in Expogaya for RM28.04mil
KUALA LUMPUR: Meta Bright Group Bhd has proposed to acquire a 70 per cent equity interest in Expogaya Sdn Bhd for RM28.04 million, to be fully settled via internally generated funds.
In a filing with Bursa Malaysia today, Meta Bright said the proposed acquisition entails a subscription of 500,000 new shares which will be settled via a cash consideration of RM5 million and the acquisition of 2.02 million existing Expogaya shares worth RM23 million.
"The completion of the proposed acquisition would expand Meta Bright’s presence in the construction sector.
"This is part of the group’s proposed diversification of its business activities to include manufacturing, trading and supply of building materials, including cement, ready-mixed concrete and its related products, as well as provision of related services, including transportation services and equipment rental.
"The proposed acquisition would transform the group into a significant vertically integrated player in the broader construction sector,” it said.
Expogaya’s group of companies is primarily involved in the manufacturing, trading and supplying of ready-mix concrete, with 16 batching facilities strategically located near major hubs of construction activity in Sabah.
Meta Bright’s corporate and strategic executive director, Derek Phang Kiew Lim said the acquisition is part of its longer-term strategy to transform the group into one with sustainable earnings.
"It is a game-changing move for our property development division,” he added. - Bernama