Sunsuria buys controlling stake in construction firm with CIDB licence

KUALA LUMPUR (April 26): Sunsuria Bhd hopes to have access to infrastructure and development projects in the government and private sector through its acquisition of a controlling stake in a firm that holds a Construction Industry Development Board (CIDB) licence.

Sunsuria said the acquisition of the 51% equity in Prosperspan Construction Sdn Bhd for RM408,000 will provide the property developer with the capabilities to venture into the construction sector, which is expected to grow by 8% or RM170 billion in 2017.

Prosperspan will be used to engage in upcoming construction, engineering, and similar ancillary services and activities in Malaysia, it said in a statement.

Sunsuria's wholly-owned unit Sunsuria Builders Sdn Bhd is buying the 51% stake in Prosperspan from an individual named Chuah Peak San, according to the group's filing with Bursa Malaysia. The remaining 49% stake is held by Spanway Construction Sdn Bhd.

Sunsuria executive chairman Datuk Ter Leong Yap said the group saw a timely opportunity to strengthen its capabilities and gain access to new business growth areas.

"We expect this to enhance innovation in our products and increase our margins for future property developments," Ter added.

The group reiterated its plan to launch projects with total gross development value of RM1.55 billion in 2017.

Sunsuria's share price closed unchanged at RM1.46 today for a market capitalisation of RM1.17 billion. — theedgemarkets.com

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