Gamuda unit to acquire Australian transport projects business worth RM636m
Kuala Lumpur (Feb 22): Gamuda Bhd has executed an asset sale agreement to acquire the Australian transport projects business at an enterprise value of A$212 million (RM636 million) cash.
Its Australian unit DT Infrastructure Pty Ltd inked the agreement on Wednesday (Feb 22) to take over Downer’s Australian transport projects (DTP) business — which provides civil construction services in delivering transport projects, with specialist rail capability — from Downer EDI Works Pty Ltd and VEC Civil Engineering Pty Ltd.
Gamuda said the cash deal, which is expected to be completed by June, will be financed by internal generated funds as well as borrowings.
The move is in line with Gamuda’s growth plan in the Australian market of achieving annual revenue of A$3 billion in the next two to three years, the group said in a filing with Bursa Malaysia.
Gamuda group managing director Datuk Lin Yun Ling commented that this acquisition accelerates the group’s local expertise in Australia across a wider range of infrastructure projects, and connects its regional expertise in turnkey infrastructure delivery with existing and new local clients.
“We believe there are positive opportunities for growth in Australia, and this move enables us to expand not only our revenue base, but also enables participation in different segments of the transport infrastructure market — from large tunnelling and infrastructure jobs to medium-sized projects in rail, track construction, line electrification, delivery of depots and stabling yards, and construction of railway stations,” said Lin.
“Gamuda [also] can augment and build on DTP’s long-term relationships with various public and private stakeholders, particularly the government, public transport authorities and the community. Gamuda would be leveraging this strong stakeholder relationship with an increased focus on stakeholder exposure, networks, and resources,” he added.
Gamuda shares closed up 11 sen or 2.78% at RM4.06 on Wednesday, translating into a market capitalisation of RM10.64 billion.