Gagasan Nadi gets nod for concessionaire takeover

KUALA LUMPUR: Gagasan Nadi Cergas Bhd has secured approval from shareholders to acquire a 69.4% stake in Konsortium PAE Sepakat Sdn Bhd (KPSSB), a concessionaire that manages student hostels, for RM127.3mil.

In a statement, Gagasan Nadi said KPSSB is currently 55.6% owned by Seri Delima Anggun Sdn Bhd (SDASB), and the remaining 44.4% equity interest is held by Serata Ehsan Sdn Bhd (SESB) through its wholly owned subsidiary, PAE Builders Sdn Bhd.

It said the proposed acquisition for RM127.3mil entails Gagasan Nadi acquiring 100% of SESB and a 45% stake in SDASB, giving the group an effective controlling interest of 69.4%.

Its group managing director, Datuk Wan Azman Wan Kamal, said the concession and facility management arm remains one of its most reliable performance drivers, providing consistent recurring income and reinforcing the strength of its diversified business model.

“The takeover of KPSSB represents a significant expansion of this segment, bringing in a well-established concession portfolio that will boost our recurring revenue through stable, long-term cash generation.

“Meanwhile, the recent establishment of the sukuk wakalah facility is a strategic initiative that will support Gagasan Nadi’s acquisition of a major facility management concession while optimising financing costs,” he said.

The group, through its wholly owned subsidiary GNCB Capital Sdn Bhd, has established a sukuk wakalah facility to partly fund the acquisition.

The issuance will provide the group with flexibility to raise funds through a sukuk wakalah issuance with a nominal value of up to RM330mil.

Maybank Islamic Bhd has committed to fully subscribing to the unrated sukuk, up to the amount to be issued by the group.

“The sukuk wakalah facility has a tenure of up to 12 years, with each tranche ranging from one to 12 years, provided all tranches mature on or before the facility’s expiry.

“The sukuk wakalah is expected to be issued within 90 business days from lodgement with the Securities Commission, or such extended date as approved.

“The strategic takeover of KPSSB will be earnings-accretive to the group, adding RM155.2mil to its facility management order book over the duration of the concession,” it said.

Gagasan Nadi said the transaction will also provide a bargain purchase gain of RM33.2mil and generate additional annual income from accretion of fair value amounting to RM19mil, before finance costs. — Bernama