Executive Director, Tan Sri Ir Kuna Sittampalam, said with the acquisition of SMHB Engineering Sdn Bhd, the group was expected to be able to compete globally, including in India and the Philippines.
“We are looking at opportunities out there and locally we are ready to participate in the coming Mass Rapid Transit 3.
“Wherever the government infrastructure projects are, we will go because we do not choose,” he told reporters after the company’s extraordinary general meeting (EGM) here today.
Kuna, however, said the focus on the mergers and acquisitions would need to rightly and culturally complement the group’s businesses.
“We are in no hurry but we are hungry, and as Harvard Business reported, 85 per cent of all mergers failed globally, we will not acquire if it does not fit us,” he said.
Meanwhile, its Chief Executive Director, Datuk Ir B Nitchianathan, said the group would also focus on the Building Information Modelling (BIM), which could potentially contribute substantially to the group if the government, through the Works Ministry, would enforce it in 2019.
“BIM is a big growth area and we are probably the only one that carries the in-house facility.
“So currently we are looking to find partners in this area as we want to expand further,” he said, adding that BIM was still at an infant stage of implementation.
BIM is an intelligent 3D model-based process that gives architecture, engineering, and construction professionals the insight and tools to efficiently plan, design, construct and manage buildings and infrastructure.
At its EGM, Nitchiananthan said, the company has obtained shareholders’ approval for the acquisition of the entire stake of SMHB for RM270 million.
He said the funding involved bank borrowings of RM85 million; RM89 million from private placement and rights issue; and the issuance of new shares in HEB to SMHB vendors at RM1.14 per share.
SMHB is involved mainly in the water and waste water management as well as water infrastructure related.
Nitchiananthan said after the completion of the acquisition of SMHB, the group would still allow SMHB to operate independently in the next three years to enable a better understanding between both parties’ core business.
“With the acquisition, we will expect a saving of about five to 10 per cent in our core business,” he said.
On water business outlook, Nitchiananthan said, he was optimistic the group could tap into plenty of opportunities, including services to solve water shortages, namely, in Selangor and Negeri Sembilan.
“Overall, we are confident 2018 would be a much better year for us compare to last year,” he said. – Bernama