KUALA LUMPUR (May 5): Gabungan AQRS Bhd's wholly-owned subsidiary has proposed to acquire a 49% stake in the turnkey contractor for a PR1MA housing project in Kuantan, Pahang, with the construction contract valued at RM424.23 million.
This project is the first since Gabungan AQRS announced a reshuffling of its management team and board of directors last week, which saw executive director Datuk Azizan Jaafar become Gabungan AQRS's chief executive officer. He is a shareholder and director of a subsidiary of Tanah Makmur Bhd, a property developer and plantation company.
In a filing with Bursa Malaysia today, the construction-cum-property development firm said its subsidiary Gabungan Strategik Sdn Bhd signed a joint venture (JV) agreement with Monolight IBS Building System Sdn Bhd to construct, develop, and complete the development of PR1MA homes together with all the necessary amenities, utilities, facility, and infrastructure.
The project will be built on a 182,000 sq m tract in Kuala Kuantan. Monolight will hold a 51% stake in the JV.
Gabungan AQRS shares and warrants jumped today to the highest in nine months and landed on the top actives ranking, ahead of the announcement. The construction-cum-property development firm's shares jumped by 11.11% to its day's high of RM1, a level not seen since Aug 6, 2015's intraday high of RM1.02. A total of 3.7 million shares were traded.
Gabungan AQRS warrant, GBGAQRS-WA, meanwhile leaped by a larger quantum, and ran ahead of its mother share's value when imputing its exercise price of RM1.30. It added 7.5 sen or 39.47% to close at 26.5 sen, with its intraday high at 27.5 sen. The derivative's trading volume stood at 24 million.
When contacted, Azizan told theedgemarkets.com that the share price run could be due to investors anticipating that Gabungan AQRS's management changes would bode well for the company going forward.
"As some people would know, I am also involved with Tanah Makmur Bhd, and they are aware [of] my track record. We (Gabungan AQRS's management) are working hard on bringing more projects and businesses for the group," he said.
Azizan said pending local authority's approval, the earthworks for the PR1MA housing project could begin in about seven weeks, and the whole construction project will have a 36-month period for completion.
For its JV with Monolight, Gabungan AQRS said the project was expected to contribute positively towards its earnings and earnings per share for this financial year ending Dec 31, 2016 (FY16) and beyond.
Gabungan AQRS shares rose 10 sen or 11.11% to close at RM1 with a market capitalisation of RM365.103 million.
GBGAQRS (5226) - Gabungan AQRS acquires 49% stake in PR1MA turnkey contractor
http://www.theedgemarkets.com/my/article/gabungan-aqrs-acquires-49-stake-pr1ma-turnkey-contractor
