KUALA LUMPUR (Feb 14): Seacera Group Bhd rose as much as 4.11% in morning trade today after revealing its intention to buy a 70% controlling stake in builder Teras Sari Resources Sdn Bhd, which is undertaking a RM338.14 million project to upgrade the public road from Bandar Pekan to Kampung Sungai Miang in Pekan, Pahang.
At 9.30am, Seacera rose three sen to 76 sen with 555,200 shares traded, for a market capitalisation of RM272.94 million.
Over the past 12 months, the counter has fallen about 17.84%.
Yesterday, in a filing with Bursa Malaysia, the tile manufacturing cum property and construction group said its wholly-owned subsidiary Seacera Builders Sdn Bhd has entered into a heads of agreement with LT Century Development Sdn Bhd and LTC Holdings Sdn Bhd for the proposed acquisition of 7.74 million shares or a 70% stake in Teras Sari Resources at a price to be determined later.
Seacera said it intends to issue new Seacera shares to settle the consideration shares.
"This proposed acquisition is a major leap for our internal target of securing a RM1 billion order book, which will keep us busy for the next three to five years, while we are getting the best value for our 500 acres of land. We envision that the construction business division shall be the main engine growth for Seacera going forward," Seacera group managing director Zulkarnin Ariffin said in a statement. — theedgemarkets.com