KUALA LUMPUR (May 5): Bina Puri Holdings Bhd (KL:BPURI) is acquiring a Sarawak-based water treatment contractor Enforture (Sarawak) Sdn Bhd for RM100,000 cash plus profit payment based on future performance.
On Tuesday, the construction and property development firm announced that it is acquiring Enforture Sarawak from Ng Tze Wei and Ng Qing Xiang in a deal that includes a profit-based payment capped at RM15 million or 40% of the collected net project profit (whichever is lower).
“The proposed acquisition is expected to allow Bina Puri to access an operating platform with water treatment engineering experience, project personnel, project documentation, technical know-how and ongoing project involvement.
“The proposed acquisition is also expected to complement the group’s existing construction capabilities and may strengthen the group’s ability to undertake or support water infrastructure projects in Sarawak and other relevant markets,” said Bina Puri in a Bursa filing announcing the deal.
Enforture Sarawak is involved in water and wastewater treatment and mechanical works.
According to Bina Puri, the vendors represented that Enforture Sarawak is undertaking works with an aggregate value of RM192.8 million in Julau, Song, Kapit, Saratok and Serian.
The works are expected to deliver RM52.9 million profit before tax and RM40.2 million profit after tax over the next two years.
Last week, Bina Puri announced that it is extending its financial year again, combining nearly two years of results into a 23-month reporting period by switching to a May year-end.
The construction firm, known for building KLIA2 and LRT projects, is facing several winding-up petitions and is undergoing debt restructuring through a scheme of arrangement with creditors.
Despite its troubles, the group had secured a road construction and upgrade subcontract worth RM156.45 million in Simunjan, Sarawak, last month and another RM42.5 million construction contract in Limbang, Sarawak, in March.
As the market closed on Tuesday, Bina Puri’s share price was up one sen or 1.69% at 30 sen, valuing the company at RM267.9 million.