Meta Bright Group Berhad is proposing to acquire 70% equity interest in Expogaya Sdn. Bhd. for RM28.04m, a company that is primarily involved in the manufacturing, trading, and supplying of ready-mix concrete with its 16 batching facilities strategically located near major hubs of construction activity in Sabah.
Upon completion, Meta Bright will expand its presence upstream in the construction sector, as part of its proposed diversification of its business activities to include manufacturing, trading, and supply of building materials including cement, ready-mixed concrete and its related products as well as provision of related services including transportation services and
equipment rental.
The proposed acquisition entails a subscription of 0.5 million new shares which will be settled via a cash consideration of RM5 million and the acquisition of 2.02 million existing EXPO shares valued at RM23 million settled through the issuance of 98 million new ordinary shares in Meta Bright at RM0.234 each, based on an approximate 10% discount to Meta Bright’s 5-day volume weighted average share price as of the last practicable date.
Meta’s established Semenanjung presence could also potentially help with any of EXPO’s expansion in that direction if a suitable entry point is identified.
