KUALA LUMPUR (Nov 22): Serba Dinamik Holdings Bhd, which already owns 15% of UK Aim Market-listed Green & Smart Holdings Plc (GSH), has proposed to purchase another tenth or 34.54 million shares of the company from K2M Ventures Sdn Bhd for RM13 million or GBP2.41 million.
In a filing with Bursa Malaysia today, Serba Dinamik said the purchase — through wholly-owned subsidiary Serba Dinamik Group Bhd (SDGB) — will be satisfied entirely in cash via internally-generated funds.
Through wholly-owned subsidiary Serba Dinamik International Ltd (SDIL), Serba Dinamik already owns 15% through a subscription in July of 51.81 million new GSH shares for which the former paid £3.21 million or RM16.99 million.
As at Nov 13, Serba Dinamik holds about 15% of GSH, and K2M Ventures about 42.5%. Post-completion of the proposed acquisition, Serba Dinamik will hold a 25% indirect stake in GSH.
“The proposed acquisition is part of Serba Dinamik Group’s strategy to expand its business into asset ownership model, as well as to expand its engineering, procurement, construction and commissioning (EPCC) business segment and EPCC capabilities,” the company said, adding it would also enable the group to have the first right of refusal on all future EPCC works under the GSH Group.
To-date, the GSH group has completed two bio-gas plants and awarded one EPCC contract relating to a 2.7MW biogas power plant in Teluk Intan, Perak, another of Serba Dinamik’s wholly-owned subsidiary Serba Dinamik Sdn Bhd.
In addition, the GSH group is also in the midst of developing three other bio-gas plants with an estimated total project value of RM49 million and may potentially embark on joint ventures with leading plantation owners to develop bio-gas plants that carry EPCC contracts valued at approximately RM40 million.
Taking the aforesaid into consideration, the Group — as a GSH shareholder — is expected to reap benefits in the form of the EPCC opportunities and dividends, if any.
Furthermore, the proposed acquisition is expected to contribute positively to the consolidated earnings and earnings per share (EPS) of Serba Dinamik in the future, through its share of consolidated net profits from GSH and contributions from EPCC works.
Also, Serba Dinamik said the effects of the proposed acquisition on the group’s future consolidated earnings and/or EPS would depend on, amongst others, GSH’s future performance.
Barring any unforeseen circumstances, the proposed acquisition is expected to be completed by the fourth quarter of 2018.
At 2.57pm, shares of Serba Dinamik were down one sen or 0.26% to RM3.88, valuing it at RM5.68 billion.