SAAG to acquire Beta Asset for RM110m (9652)

SAAG Consolidated (M) Bhd has entered into a sale of shares agreement with Norhisham Mohamad Noor and Muhamad Nazrul
Akmam Norhisham for the acquisition of their entire equity interests in Beta Asset Sdn Bhd for RM110 million.

In
a filing to Bursa Malaysia today, Inter-Pacific Securities Sdn Bhd, on
behalf of SAAG, said the purchase consideration would be satisfied by
the issuance of 916.666 million new SAAG shares at 12 sen per share.

"The
main purpose of the proposed acquisition is to enable SAAG to
participate in a concession or concessions to be granted to Beta by
Majlis Amanah Rakyat (MARA)," it added.

Inter-Pacific said Beta
has proposed to MARA to implement the construction, maintenance and
transfer of five units of Junior Mara Colleges together with all
necessary infrastructure facilities to be known as MRSM ELITE aimed at
catering to students from families who can afford in various locations
in Malaysia by way of private finance initiative scheme.

MARA
and Beta will be entering into concession agreements in respect of the
projects. Upon signing, the concession agreement will give Beta the
rights to levy and collect additional appropriate fees from students
and persons liable to pay any fee or charges for using the projects for
a period of 25 years from the date of completion of construction of the
projects.

The construction, infrastructure and project
management division, which is generally cyclical in nature, has
contributed about half of SAAG's revenue for the financial year ended
Dec 31, 2011.

"The acquisition of Beta, which will own the
concession, is expected to provide a stable stream of income to SAAG
over the concession period.

"In addition, the proposed
acquisition will enable SAAG to regularise its operating cashflow and
is expected to improve its future earnings and financial condition. It
will provide a platform for SAAG to expand its involvement in other
concession and project management business," Inter-Pacific added.

The proposed acquisition is expected to be completed by the first quarter of next year. -- Bernama