GDB buys 70% stake in Eco Geotechnics for RM5.96m

KUALA LUMPUR (July 24): Construction services group GDB Holdings Bhd is acquiring a 70% equity interest in Eco Geotechnics Sdn Bhd for RM5.96 million.

GDB said the group and its wholly-owned subsidiary, Grand Dynamic Builders Sdn Bhd, have signed an agreement to buy the shares from Eco Geotechnics director Goh Eng Ngai (who holds an 84% stake in the company), Tan Loo Loo (who owns 10%), and Wong Choo Keong (who holds the remaining 6%).

Founded in 2011, Eco Geotechnics is a construction contractor specialising in major geotechnical and foundation engineering works, which includes bored, caisson and micro piling solutions, diaphragm walls, earth retaining systems, soil treatment, earthworks, basement works as well as general construction.

To date, Eco Geotechnics has delivered more than RM240 million worth of piling and foundation works for construction and property development firms, GDB said in a filing with Bursa Malaysia.

The group said the acquisition will enable it to benefit from Eco Geotechnics’ bored piling and foundation works speciality, strengthen GDB’s competitive edge as an integrated builder, and create opportunities to expand its customer base.

GDB said the acquisition will be financed through internally generated funds and is expected to be completed in the fourth quarter of 2019 (4Q19).

Shares in GDB fell half a sen or 1.52% to 32.5 sen yesterday, for a market capitalisation of RM203.13 million.