Seacera Group Bhd, a Bursa Malaysia Main Market listed company that is involved in the tile manufacturing, property and construction businesses, announced that its wholly-owned subsidary Seacera Builders Sdn Bhd has entered into a heads of agreement (HOA) with LT Century Development Sdn Bhd and LTC Holdings Sdn Bhd (Vendors) for the proposed acquisition of 70% equity interest in Teras Sari Resources Sdn Bhd (TSRSB) for a purchase consideration to be determined at a later date.
On the same day, TSRSB has received and accepted a Letter of Intent (LOI) from Jabatan Kerja Raya Malaysia for the project “Menaiktaraf Jalan Persekutuan (FT003) Dari Bandar Pekan ke Kampung Sungai Miang, Pekan, Pahang” which comes with a contract value of RM338.14 million.
TSRSB is a construction company principally engaged in water, building construction and civil engineering works. TSRSB is registered with Pusat Khidmat Kontraktor as a Class ‘A’ Contractor with Bumiputera Status and Construction Industry Development Board Malaysia (CIDB) with Grade 7 majoring in Construction of Building and Civil Engineering Works.
Seacera Group Berhad Group Managing Director Zulkarnin Bin Ariffin said: “This proposed acquisition of TSRSB represents an excellent and strategic fit for our business, which will enable Seacera to expand its construction business significantly, driven by the RM338 million contract that TSRSB has in hand.”
“Apart from that, we have a recently announced RM202 million mixed development project in Terengganu as well as existing construction jobs worth RM35 million. This proposed acquisition is a major leap for our internal target of securing a RM1 billion order book, which will keep us busy for the next 3 to 5 years while we are getting the best value for our 500 acres of land. We envision that the construction business division shall be the main engine growth for Seacera going forward.”
The total purchase consideration will only be determined prior to entering into a conditional share sale agreement, and the Company also intends to issue new Seacera shares at an issue price to be determined later.