KUALA LUMPUR: Sarawak Cable Bhd has entered into a share sale agreement with Austin Corp (Malaysia) Sdn Bhd for the proposed acquisition of the remaining 25% equity in Sarwaja Timur Sdn Bhd (STSB) it does not already own for RM11.02mil, to be satisfied via the issuance of 5.2 million new shares of 50 sen each in Sarawak Cable at an issue price of RM2.12.
Currently, STSB is a 75% owned subsidiary of Sarawak Cable. Upon completion of this acquisition, it will become a wholly-owned subsidiary of Sarawak Cable.
STSB is principally involved in the manufacturing, fabrication, galvanising and sale of steel structures.
It is an established steel fabrication and hot dip galvanising company in Sarawak.
Sarawak Cable also proposed the acquisition of a 65% equity interest in Trenergy Infrastructure Sdn Bhd for RM24.45mil, to be satisfied via the issuance of 11.53 million new Sarawak Cable shares at the issue price.
Trenergy is in the business of general contractors and infrastructure development.
There is also a proposed exemption for Datuk Seri Mahmud Abu Bekir Taib and persons acting in concert from the obligation to extend a mandatory offer for the remaining Sarawak Cable shares not already owned by them.
Mahmud was appointed as the chairman of Trenergy since March 18.
He is currently the non-independent non-executive chairman of Sarawak Cable and the deputy group chairman of Cahya Mata Sarawak Berhad (CMS) and a major shareholder of CMS.
