Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Thursday, 2 November 2023, 15:44 HKT/SGT
Share:
    

Source: Stella Holdings Bhd
Stella Wins Shareholders' Nod in EGM for PTM Acquisition & Strategic Changes
Unanimous EGM Votes Bolster Management's Optimism for Growth & Diversification

KUALA LUMPUR, Nov 2, 2023 - (ACN Newswire) - Stella Holdings Berhad ("Stella" or the "Company"), an experienced player in the field of construction, property investment, and property development, is pleased to announce that all resolutions set forth at its Extraordinary General Meeting (EGM) have received endorsement from shareholders. Notably, a significant resolution encompassing the acquisition of Pembinaan Teguh Maju Sdn Bhd ("PTM") was approved unanimously.

Datuk Benson Lau, Managing Director of Stella
Datuk Benson Lau, Managing Director of Stella

The acquisition of PTM comes with considerable promise and far-reaching implications for Stella. Valued at a total purchase consideration of RM380.0 million, PTM will become a wholly-owned subsidiary of Stella. This acquisition is especially noteworthy given PTM's RM1.16 billion worth of outstanding orders in areas such as roadworks, building construction, and mechanical and electrical projects. Furthermore, PTM has submitted quotations and is in discussions for contracts totalling approximately RM1.78 billion, amplifying the earnings potential over the next three financial years.

PTM also provides a profit guarantee of RM120.0 million for the financial years ending 30 June 2024, 2025, and 2026 on an aggregate basis to the Company.

The EGM also endorsed a significant private placement of up to 50.0 million shares, equating to around 74.63% of the current total number of issued Stella shares or 11.99% post-acquisition. This initiative aims to raise RM40.0 million for necessities like construction materials, labour costs, and subcontractors.

Complementing this acquisition, Stella Holdings Berhad will undergo a rebranding to become Varia Berhad, a change that encapsulates its wider vision and growth objectives.

After the conclusion of the EGM, Datuk Benson Lau, Managing Director of Stella, commented with enthusiasm: "Our unanimous decision to acquire PTM marks a pivotal moment for Stella. This new addition brings a vast RM1.16 billion worth of outstanding orders into our portfolio, thereby solidifying our growth prospects. PTM’s strengths in civil engineering, roadworks, and various infrastructure projects represent a perfect strategic alignment with our existing operations. We are also emboldened by our shareholders' resolute support for our ambitious private placement and rebranding initiatives. Their unwavering confidence empowers us to aim higher and execute our strategic roadmap to fruition."

As at 2 November 2023, 12:30 P.M., Stella Holdings Berhad’s share price is RM1.07 with a market capitalisation of RM71.7 million.

Stella Holdings Berhad: 5006 [BURSA: STELLA], https://stella-holdings.com.my/




Topic: Press release summary
Source: Stella Holdings Bhd

Sectors: Daily Finance, Daily News, Local Biz
http://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2025 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.



Latest Press Releases
Mitsubishi Power Receives Contract for Large-Scale GTCC Project with 2,800 MW Total Output for Taiwan's Tung Hsiao Power Plant  
Friday, September 5, 2025 8:47:00 PM
Hitachi announces historic $1 billion USD manufacturing investment to power America's energy future through production of critical grid infrastructure  
Friday, September 5, 2025 8:00:00 PM
Fourth Paradigm announces 2025 interim results  
Sept 5, 2025 18:25 HKT/SGT
Asia Unicorn Forum Releases 2024 Report: China, India, Israel Top Asian Unicorn Rankings  
Sept 5, 2025 11:03 HKT/SGT
CBL International Reports 1H 2025 Results Highlighting Strong Biofuel Growth, Reduced Net Loss, and Improved Gross Profit Margin  
Sept 5, 2025 10:36 HKT/SGT
NEC participates in Locked Shields 2025 hosted by the NATO Cooperative Cyber Defence Centre of Excellence  
Friday, September 5, 2025 10:20:00 AM
LOLC Advanced Tech and Corsair Group Join Forces to Transform Waste into Fuel in Sri Lanka  
Sept 5, 2025 07:00 HKT/SGT
TANAKA Announces Executive Appointment  
Friday, September 5, 2025 2:00:00 AM
The MOU Signing Ceremony cum Seminar Titled "A New Horizon in Film & TV Trading: Web3 x DMP - Reshaping the Cross-Industry Supply Chain" Hosted by eBRAM Concludes Successfully  
Sept 4, 2025 22:35 HKT/SGT
Magnum Opus Resorts Launches International Architectural Design Competition for Iconic Costa Rica Retreat  
Sept 4, 2025 21:07 HKT/SGT
More Press release >>
 Events:
More >>
 News Alerts
Copyright © 2025 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575

Connect With us: