KUALA LUMPUR (April 26): Gadang Holdings Bhd has purchased 20 million shares in DWL Resources Bhd for RM18 million in cash or 90 sen per share, in a bid to build and strengthen the business relationships between both companies.
According to a bourse filing today, Gadang said the acquisition of the shares, which represented a 10.07% stake in DWL Resources, was done via a direct business transaction.
To recap, its unit Gadang Engineering (M) Sdn Bhd had on April 18 2019 entered into a pre-bid consortium agreement with Million Rich Development Sdn Bhd, a wholly-owned subsidiary of DWL to work with each other to bid for infrastructure projects.
They will jointly undertake a contract for such infrastructure works if their bids are successful.
Gadang shares price fell 3.5 sen or 3.98% to close at 84.5 sen, giving it a market capitalisation of RM559.15 million.
Meanwhile, DWL Resources shares also dipped five sen or 3.97% to RM1.21, translating into a market capitalisation of RM240.41 million.
http://www.theedgemarkets.com/article/gadang-acquires-20-million-shares-dwl-resources-rm18-mil
