KUALA LUMPUR (Dec 8): Construction group Gagasan Nadi Cergas Bhd (KL:NADIBHD) said on Monday that its proposed acquisition of a majority stake in Konsortium PAE Sepakat Sdn Bhd (KPSSB) — the concessionaire for student hostel facilities in seven polytechnic campuses — has become unconditional.
KPSSB is 55.6%-owned by Seri Delima Anggun Sdn Bhd and 44.45 by Serata Ehsan Sdn Bhd.
Gagasan Nadi Cergas plans to acquire a 45% stake in Seri Delima Anggun for RM47.25 million and 100% of Serata Ehsan for RM80 million. The original plan was to fully acquire both companies (and thereby wholly-owning KPSSB), but Gagasan Nadi Cergas revised the structure after the Public Private Partnership Unit (Ukas) only gave the greenlight for the purchase of a majority stake in KPSSB.
The Serata Ehsan share sale agreement became unconditional on Dec 8, after Gagasan Nadi Cergas agreed to waive a condition precedent requiring written confirmation from third-party financiers that no amounts were outstanding, it said in a filing with Bursa Malaysia.
The Seri Delima Anggun share sale agreement SSA became unconditional earlier, on Dec 4, following shareholder approval at the group’s extraordinary general meeting.
Both transactions are inter-conditional, and the acquisitions of the two companies will be completed simultaneously, said Gagasan Nadi Cergas.
KPSSB had in 2013 secured concession agreements to develop and maintain student hostels at campuses in Banting, Ipoh, Port Dickson, Johor Bahru, Seberang Prai, Jeli and Kota Bahru until 2036. Each polytechnic campus is supported by a special purpose vehicle fully-owned by KPSSB.
The deal is envisioned to enhance Gagasan Nadi Cergas' existing concession and facility management operations, which comprise facility management concessions for student accommodation facilities at the International Islamic University Malaysia campus in Kuantan and the Universiti Teknikal Malaysia Melaka campus in Melaka.
Shares of Gagasan Nadi Cergas closed unchanged at 41 sen on Monday, giving it a market capitalisation of RM308.73 million.