KUALA LUMPUR: Gagasan Nadi Cergas Bhd aims to enhance its concession and facility management operations while further strengthening its student hostel asset management through a proposed acquisition of a concession valued at RM185 million.
Gagasan Nadi will undertake a corporate exercise to gain full control of Konsortium PAE Sepakat Sdn Bhd, which owns a facility management concession for student hostel facilities in seven polytechnic campuses.
This is by acquiring the two shareholders in Konsortium PAE namely Serata Ehsan Sdn Bhd and Seri Delima Anggun Sdn Bhd.
Serata Ehsan, bia its fully-owned subsidiary PAE Builders Sdn Bhd, holds a 44.4 per cent stake in Konsortium PAE, while the balance 55.6 per cent is held by Seri Delima Anggun.
The proposed exercise entails the signing of two conditional sales and purchase agreements by Gagasan Nadi.
The first agreement is for the acquisition of the entire equity interest in Serata Ehsan for RM80 million; and the other, is for the acquisition of the entire stake in Seri Delime Anggun RM105 million.
"Our concession and facility management operations remain a key strength for Gagasan Nadi, delivering a steady, stable stream of recurring income," said Gagasan Nadi group managing director Datuk Wan Azman Wan Kamal.
"The acquisition of Konsortium PAE will enlarge the group's revenue and earnings base for the segmentthrough sustainable income and cash flows generated from the concessions under Konsortium PAE.
"With the proposed acquisition, we aim to solidify our position in the sector, not only by increasing our portfolio of student hostels under management from two to nine, but also enhance our profitability through shared services and benefits from economies of scale," he added.