Shares in Gamuda Bhd surged soon after KLSE’s opening bell this morning following news that the construction group had acquired Downer Group’s Australian transport projects business.
Traders had bought up Gamuda’s shares by 12 sen or 2.96% to RM4.18 a share on the back of 2.65 million shares at about 9.40am.
Gamuda announced in a filing with Bursa Malaysia yesterday its foreign sub-subsidiary DT Infrastructure Pty Ltd had acquired the Downer business unit, Downer Transport Projects (DTP), for an enterprise value of A$212mil (RM636mil).
According to Gamuda, DTP provides civil construction services in delivering transport projects for its customers, with specialist rail capability.
DTP operates across Australia and primarily generates revenue from government clients, with a smaller share coming from private projects.
Its customer base, contacts and geographical exposure are mainly in New South Wales, Western Australia and Victoria.
Some of the key projects currently carried out by DTP are in relation to rail line upgrades and duplication, rail extension, rail maintenance, service signalling and communication maintenance, and freeway upgrades.
According to Gamuda, the DTP acquisition is a strategic move and is in line with its growth plan of achieving A$3bil in revenue annually in Australia within the next two to three years.
“With the acquisition, Gamuda will be tapping DTP’s in-house capabilities and track record namely track infrastructure, light rail, stations, rail overhead lines, signalling, communications and integration, rail maintenance, specialist plant services and road and bridge construction,” the group said.
“The consolidated capability and additional construction pipeline from DT Infrastructure across Australia will reinforce Gamuda’s position as we expand our market reach in Australia by venturing into wider rail disciplines.
“Gamuda will be well positioned to participate in a larger pipeline of transport projects focusing on Rail, Light Rail and Rail Systems, with an established network of subcontractors.”
The DTP acquisition is expected to be completed by the end of the second quarter of 2023 and is expected to contribute positively to Gamuda’s earnings from the financial year 2024 onwards.
