Seacera Group Bhd, a Bursa Malaysia Main Market listed company that is involved in the tile manufacturing, property and construction businesses, announced that Seacera Builders Sdn Bhd, a wholly-owned subsidiary of the Company, has entered into a conditional share sale- with LT Century Development Sdn Bhd and LTC Holdings Sdn Bhd for the proposed acquisition of the Sale Shares representing 70% equity interest in Teras Sari Resources Sdn Bhd for a purchase consideration of RM35 million.
A filing with Bursa Malaysia showed that the Purchase Consideration will be fully satisfied via the issuance of 35 million new ordinary shares of Seacera at an issue price of RM1 per share. The Proposed Acquisition comes with a cumulative profit before tax guarantee of RM70 million for the financial year ending 31 December 2018, 31 December 2019, 31 December 2020 and 31 December 2021.
TSRSB has an order book of RM338 million, for the project known as “Projek Menaiktaraf Jalan Persekutuan FT003 dari Bandar Pekan ke Kampung Sungai Miang, Pekan, Pahang”. This project is expected to be completed by 28 February 2022. It 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: “We are very optimistic that FY2018 will be a year with a significant leap of growth in terms of our earnings, given that TSRSB has guaranteed a PBT of not less than RM10 million in FY2018.”
“Following that, TSRSB has guaranteed a PBT of not less than RM15mil, RM20mil, and RM25mil for the financial years 2019, 2020 and 2021, respectively. For the years beyond FY2018, we are also looking to unlock the value of our jewel asset – the 500 acres of land adjacent to Sungai Long, Selangor. We have received various proposals and this Proposed Acquisition comes just in time to provide us the buffer time to evaluate and select a proposal that can provide us maximum returns.”
“With this Proposed Acquisition, we are one step closer to the internal target of securing a RM1 billion order book. Currently our order book stands at RM575 million – RM338 million (TSRSB), RM202 million (mixed development project in Terengganu) and RM35 million (existing jobs). In line with our bumiputra-controlled public listed company (“BCPLC”), we are optimistic to secure more construction jobs, which our construction business will complement our tiles business," Zulkarnin added.
