GDB plans RM81.6 million stake purchases and property expansion
Proposed share fundraising would generate between RM70.83 million and RM183.48 million to finance acquisitions, working capital and related expenses.
GDB Holdings Bhd outlined proposals on Oct 8 to purchase controlling interests in two construction companies and diversify into property development. Its bourse filing put the combined price for 51% stakes in Bina Tegas Sdn Bhd and BT Borneo Engineering Sdn Bhd at RM81.6 million.
The purchase consideration comprises a cash payment of RM40.8 million, with another RM40.8 million payable through 96.91 million newly issued shares priced at 42.1 sen apiece. GDB said the deals would bring together the businesses’ expertise, resources and relationships to strengthen its construction operations.
GDB projected a construction order book of about RM741.81 million after the purchases are completed. The corresponding figure at end-June was RM476.13 million.
New subsidiary GDB Development Sdn Bhd would undertake the property expansion. The group expects property development to contribute at least 25% to each of its net profit and net assets.
GDB has bought a Kuching, Sarawak, site measuring 6,961 sq m and identified potential additional land banks of about 4,754 sq m. Its proposed mixed-use development carries an estimated RM500 million gross development value, with plans for serviced apartments, SOHO units and retail components.
The financing proposals include a private placement capped at 309.38 million new shares, equivalent to up to 30% of issued share capital. Independent third-party investors have yet to be identified. The indicative placement price is 37.4 sen.
A separate rights issue proposes a maximum of 205.36 million new shares alongside 205.36 million free detachable warrants. The entitlement is one rights share per seven existing shares; each subscribed rights share comes with one warrant.
GDB expects the two fundraising exercises to generate gross proceeds of RM70.83 million in the minimum scenario, rising to RM183.48 million in the maximum scenario. Funds would cover acquisition cash payments, construction and property working capital, and proposal expenses. The group anticipates completing all proposals in the first quarter of 2027.
