Axteria Group Bhd has proposed to acquire an 80% stake in Niaga Sari Sdn Bhd (NSSB) for RM35 million in cash, as part of its strategy to strengthen construction capabilities and support its property development business.
In a filing on Thursday, the group said it had signed a conditional share sale agreement with six vendors, including Datuk Chan Chee Hong, for the acquisition of 800,004 shares, representing an 80% equity interest in NSSB.
Upon completion, NSSB will become a subsidiary of Axteria.
The purchase consideration of RM35 million was arrived at on a willing-buyer-willing-seller basis, taking into account NSSB’s RM567.4 million order book and a RM9.2 million profit guarantee over two years. This implies a price-to-earnings multiple of about 9.5 times.
The other vendors involved are Gwi Chin Fatt, Datuk Wong Gian Kui, Periasamy Ganapathy, Gwi Xian Yi, Gwi Huan Yi, and Chan Khai Young.
Under the terms, RM5 million will be paid upfront, while the remaining RM30 million will be placed in an escrow account, subject to fulfilment of the profit guarantee.
Incorporated in 1985, NSSB is engaged in building construction and has completed projects worth about RM1 billion to date, ranging from factories to high-rise residential developments. It currently has ongoing and upcoming projects worth a combined RM567.4 million, including developments in Kelantan and Kuala Terengganu.
For the financial year ended June 30, 2025, NSSB recorded a net loss of RM2.13 million, with net assets of RM12.33 million.
Axteria said the acquisition is expected to complement its property development and management business, supporting expansion through joint ventures and land acquisitions while leveraging NSSB’s existing order book.
The group added that the move aligns with its strategy to pursue growth opportunities without significant upfront capital, and is expected to contribute positively to future earnings.
Axteria shares closed unchanged at nine sen, giving the group a market capitalisation of about RM71 million.
