Central Global Berhad had announced that RYRT International, CGB’s 70%-owned subsidiary via its wholly-owned subsidiary CIC Construction Sdn. Bhd. had achieved a Profit After Tax of RM10.29 million for the 6-month financial period from 1 March 2022 to 31 August 2022.
As part of the acquisition of RYRT in January 2022, the Group had entered into a profit guarantee agreement whereby RYRT guarantees that it shall achieve an aggregate audited Profit After Tax of RM43.0 million for a period of 2 years for the financial year ending 31 August 2022 and FYE 31 August 2023. The acquisition was for a total indicative purchase consideration of RM30.1 million to be satisfied wholly via issuance of shares in CGB at the price of RM1.04 (“Consideration Shares”) to be allotted and issued on a deferred payment basis at every 6 months interval equivalent to 70% of the aggregate audited PAT for each of the aforementioned 6 months interval.
In accordance with the terms of the Sale and Purchase Agreement and Profit Guarantee Agreement, the final tranche amounting to 6,022,774 Balance Consideration Shares representing 70% of the aggregate audited PAT for FPE 31 August 2022 of RM6,263,684.96 shall be allotted and issued by CGB to RYRT International.
CGB’s Group Managing Director Chew Hian Tat said, “We are hopeful that our construction segment will remain strong driven by the anticipated healthy recovery of the sector particularly with the Government’s support through various initiatives such as initiating public infrastructure projects and providing policy support. This, together with a strong pipeline of project tenders to ensure a healthy replenishment of projects, we believe we will continue to deliver strong numbers in the upcoming financial year.”
“Our construction unbilled order book stands at RM407.1 million as of Financial Period Ended 30 September 2022, and we expect this to be realised over the next 3 years.”
