Gadang unit buys Indonesian water treatment firm for RM15.1m

Gadang unit buys Indonesian water treatment firm for RM15.1m
Business & Markets 2014
Written by Jeffrey Tan of theedgemalaysia.com
Monday, 21 July 2014 18:37

KUALA LUMPUR (July 21): Gadang Holdings Bhd’s indirect wholly-owned subsidiary has acquired a 70% equity interest in Indonesian water treatment firm PT. Dewata Bangun Tirta (DBT) for RM15.07 million.

DBT holds a 200 litres per second water treatment and supply concession in Kabupaten Gresik, Jawa Timur.

The firm said the proposed acquisition is part of the group’s plan to expand its treated water supply and concession in Indonesia, specifically in Kabupaten Gresik.

In a statement to Bursa Malaysia, Gadang said its indirect wholly-owned unit Asian Utilities Pte Ltd today entered into a sale and purchase of shares agreement with Nanang Mohamad Sjahbudi, Thomas Luciana and Johanes Himawan for the 70% stake.

Gadang said the proposed acquisition will be satisfied entirely by cash. Following the acquisition, it will have full management and operational control of DBT.

“The proposed acquisition, barring unforeseen circumstances, is expected to contribute positively to the earnings to the group and provide recurring income in the future,” said Gadang.

Kabupaten Gresik, located near Surabaya city, possesses a strong industrial sector which is expected to see increases in water demand in the near future, it added.