By Khairul Khalid
AK Nathan
Eversendai Corp Bhd is planning to acquire 70% of Thailand based S-Con Engineering Co Ltd for 30 million baht (RM3.5 million).
The proposed acquisition will enable Eversendai to utilise S-Con’s fantastic track record to grow and strengthen its established working relationship with its international clients and undertake a range of projects in Thailand whilst also exporting fabricated works overseas,” said AK Nathan, Eversendai executive chairman and group managing director, in an official statement.
S-Con Engineering Co Ltd’s expertise lies in steel fabrication and plant construction, with over 20 years of experience. The company’s core business over the past two decades has been in carbon steel and stainless steel fabrication, mechanical construction and installation.
It has the ability to offer full turnkey solutions in design, project management, equipment supply, system installation, commissioning and maintenance. The acquisition will see Eversendai bidding for steel, composite structures, power and petrochemical plant as well as infrastructure projects in Thailand and its surrounding regions.
Eversendai is a provider of specialist engineering and construction services with strong presence in the Middle-East region, India and Malaysia.
Recently, Eversendai Corp Bhd posted a nett profit of RM14.5 million for its third quarter of financial year 2015 (3Q15), a fourfold increase year-on-year from RM2.9 million in 3Q14.
The steel construction specialist’s revenue grew 95% year-on-year in 3Q15 to RM471 million.
“The group’s revenue continues to be predominantly driven by its operations in Middle East, which registered for 70% of its entire revenue portfolio, while the remaining revenue was derived from the steel fabrication contracts and the power plant projects in Malaysia (20.8%) and construction industry in India (9.2%).
Eversendai’s total revenue and profit after tax increased to RM1.3 billion and RM51.8 million respectively for the nine-month period ended Sept 30, 2015 compared to RM694.3 million and RM20 million in the preceding year.
As of September 2015, Eversendai has secured approximately RM1.4 billion in new contracts and its order book stood at RM1.8 billion.
At 4.15pm today, Eversendai shares were trading at 83 sen, down 3 sen.
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