• Malaysia stock market and companies daily report (September 16, 2015)

    - Fututech’s chairman and two executive directors are injecting their two privately-held companies, Kerjaya Prospek (M) and Permatang Bakti, into the group for RM458 million in cash and shares to expand its property development and construction business.

    - The deal will be financed via RM35.2 million in cash, RM42.8 million in the firm’s shares and the remaining RM360 million in new redeemable convertible preference shares at an issue price of RM1.16 each.

    - The proposed acquisition of Kerjaya Prospek will come with an aggregated profit guarantee of RM150 million for three years, which is said to present an immediate and guaranteed value for the company.

    Significance: The proposed acquisition aims to transform the group into a premium contractor with focus on the captive market for high rise projects. Upon completion, Fututech will have an enlarged construction order book of approximately RM2.9 billion, up from the current RM121 million and is said to in turn enhance its financial performance moving forward.

    Contributed by Shares Investment
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