Stella Holdings Berhad has received endorsement from its shareholders for the acquisition of Pembinaan Teguh Maju Sdn Bhd for a total purchase consideration of RM380.0 million.
With this, PTM will become a wholly-owned subsidiary of the group. Stella said the acquisition is especially noteworthy given PTM’s RM1.16 billion worth of outstanding orders in areas such as roadworks, building construction, and mechanical and electrical projects. Furthermore, PTM has submitted quotations and is in discussions for contracts totalling approximately RM1.78 billion, amplifying the earnings potential over the next three financial years.
PTM said it will also provide a profit guarantee of RM120.0 million for the financial years ending 30 June 2024, 2025, and 2026 on an aggregate basis to the Company.
Post-acquisition, Stella Holdings Berhad said it will undergo a rebranding to become Varia Berhad.
