Malaysia’s Rohas Tecnic Bhd (RTB) has entered into a conditional share sale agreement (SSA) with local companies PT Safe Tower Systems Sdn Bhd (PTSTS) and Kemuncak Agresif (M) Sdn Bhd (KAMSB) for the proposed acquisition of a 75 per cent stake in HG Power Transmission Sdn Bhd (HGPT) – an EPC and commissioning (EPCC) firm, at a purchase consideration of MYR 114.16 million. PTSTS and KAMSB own 50.1 per cent and 24.9 per cent stake respectively in HGPT. RTB will complete the purchase consideration of RM 91.66 million through the allotment and issue of its 72.8 million shares at an issue price of MYR 0.95 per RTB share and MYR 22.5 million in cash. The proposed acquisition is a strategic move to expand RTB and complement its existing products and services within the power and telecommunication industries, in which it mainly operates. It will also enable the company to gain access to the entire value chain of the power transmission industry, thus increasing its negotiating strength when bidding for and securing new projects.
