PETRA Transit Systems Sdn Bhd (PTS), a unit of the Petra Group, has emerged as a substantial shareholder of Sarawak Cable Bhd, the largest cable and wire producer in Malaysia and Southeast Asia.
PTS, the urban transit arm under the Petra Group, completed the share subscription through a private placement of 63.41 million shares in Sarawak Cable at an issue price of 35.59 sen/share which is 6.8% discount to the company’s current stock price of 38 sen.
Sarawak Cable made a Bursa Malaysia filing on the transaction on June 25.
Post-placement, PTS holds a 15.38% stake in Sarawak Cable – all for the price tag of RM22.56 mil – a perhaps ‘cheap price’ to pay for entry into Sabah and Sarawak.
Economically, both East Malaysian states are rich for their rare timber resources and tourism appeal which may somehow run parallel with the Petra Group’s interest as a diverse global conglomerate involved in sustainable technologies, manufacturing, infrastructure, media, entertainment, agriculture, lifestyle, consulting services, research and philanthropy.
“A year ago, I made a commitment to increase our presence in Borneo Malaysia. We started in Sabah and I am proud to start this journey into Sarawak,” commented Petra Group chairman and chief executive Datuk Vinod Sekhar in a statement.
Recall that on Sept 15 last year, the Petra Group launched Petra Kasih, an initiative to support economic recovery and uplift the spirit of Malaysians in the wake of the COVID-19 pandemic.
The launch was held in conjunction with the Petra Group Malaysia Day celebration at The Magellan Sutera Resort in Kota Kinabalu.
Former Mass Rapid Transit (MRT) Corporation CEO Datuk Seri Shahril Mokhtar who was recently appointed as PTS’ chief executive said there are many synergies to be tapped between Sarawak Cable and PTS as well as the broader Petra Group.
“We are confident that there will be opportunities for us to collaborate together going forward, and we will play our role to support SCB achieve its objectives” he noted.
PTS has expertise in complete monorail system solutions, from the trains, guideway beams, architecture and master planning, to project management of advanced, light urban transit system and infrastructure.
At 4.45pm, Sarawak Cable was down 1 sen or 2.56% to 1.58 million shares, thus valuing the company at RM152 million. – Aug 6, 2021
