Stella obtains shareholders nod to acquire Pembinaan Teguh Maju
Stella obtains shareholders nod to acquire Pembinaan Teguh Maju

Stella obtains shareholders’ nod to acquire Pembinaan Teguh Maju

KUALA LUMPUR: Stella Holdings Bhd obtained shareholders’ approval to acquire Pembinaan Teguh Maju Sdn Bhd (PTM) for RM380mil at an extraordinary general meeting (EGM) today.

In a statement, Stella said the acquisition of PTM comes with considerable promise and far-reaching implications for Stella.

“This acquisition is especially noteworthy given PTM’s RM1.16bil 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 RM1.78bil, amplifying the earnings potential over the next three financial years,” it said.

PTM also provides a profit guarantee of RM120mil for the financial years ending June 30, 2024, 2025, and 2026 on an aggregate basis to the company.

“Our unanimous decision to acquire PTM marks a pivotal moment for Stella. This new addition brings a vast RM1.16bil worth of outstanding orders into our portfolio, thereby solidifying our growth prospects.

“PTM’s strengths in civil engineering, roadworks, and various infrastructure projects represent a perfect strategic alignment with our existing operations. We are also emboldened by our shareholders’ resolute support for our ambitious private placement and rebranding initiatives. Their unwavering confidence empowers us to aim higher and execute our strategic roadmap to fruition,” managing director Datuk Benson Lau said.

Shareholders also approved the private placement of up to 50.0 million shares, equating to around 74.63% of the current total number of issued Stella shares or 11.99% post-acquisition.

This initiative aims to raise RM40mil for necessities like construction materials, labour costs, and subcontractors.

Complementing this acquisition, Stella will undergo a rebranding to become Varia Bhd, a change that encapsulates its wider vision and growth objectives.

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