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Share sale agreement in relation to the proposed acquisition of 70% equity interest in Eco Geotechnics Sdn Bhd (EGSB) (Acquisition)

GDB HOLDINGS BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-24072019-00003
Subject Share sale agreement in relation to the proposed acquisition of 70% equity interest in Eco Geotechnics Sdn Bhd (EGSB) (Acquisition)
Description
GDB HOLDINGS BERHAD ("GDB" OR THE "COMPANY")
- SHARE SALE AGREEMENT IN RELATION TO THE PROPOSED ACQUISITION OF 70% EQUITY INTEREST IN ECO GEOTECHNICS SDN BHD
Query Letter Contents

We refer to your Company’s announcement dated 23 July 2019 in respect of the aforesaid matter.
 

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

  1. The net profits and net assets of EGSB based on its latest audited financial statements.
  2. The sources of funding by GDB Holdings Berhad/Grand Dynamic Builders Sdn Bhd  for the Acquisition, and the breakdown thereof.
  3. Quantification of the one (1) year forecast financial results up to 30 September 2019 of the Target Company.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

Yours faithfully

 

TAN YEW ENG
Vice President, Issuers
Listing, Regulation


TYE/NMA

 

Cc : Market Surveillance Dept., Securities Commission (via fax)

For consistency purposes, the abbreviations and definitions used throughout this announcement shall have the same meanings as those previously defined in the announcement made on 23 July 2019 ("Announcement").

 

We refer to Bursa Malaysia Securities Berhad (“Bursa Securities”) query letter dated 24 July 2019 on the above matter and hereby furnish the additional information as requested:-

 

1. The net profits and net assets of EGSB based on its latest audited financial statements.

Based on EGSB’s latest audited financial statements for the financial year ended 30 September 2018, EGSB recorded a net loss of RM1.94 million, whilst the net assets stood at RM3.07 million.

 

2. The sources of funding by GDB Holdings Berhad/Grand Dynamic Builders Sdn Bhd for the Acquisition, and the breakdown thereof.

As disclosed in Section 3.1 of the Announcement, the Purchase Consideration is to be satisfied wholly in cash and will be funded entirely through internally generated funds.

 

3. Quantification of the one (1) year forecast financial results up to 30 September 2019 of the Target Company.

Based on the one (1) year forecast financial results up to 30 September 2019 prepared by the management of EGSB, the Target Company is expected to incur a loss after tax of RM2.65 million. The loss after tax of EGSB will not have an impact on the Group’s earnings for the FYE 31 December 2019 considering that the target completion of the Proposed Acquisition is by fourth quarter of 2019. Nonetheless, the Proposed Acquisition is expected to contribute positively to the Group moving forward due to the potential synergistic benefits to be derived from the integration of the Target Company with the Group as set out in Section 4 of the Announcement.

 

This announcement is dated 25 July 2019.





Announcement Info

Company Name GDB HOLDINGS BERHAD
Stock Name GDB
Date Announced 25 Jul 2019
Category General Announcement for PLC
Reference Number GA1-25072019-00027




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