KUALA LUMPUR, Sunway Construction Group Bhd (KL:SUNCON) is selling its entire 40% stake in Engie-Sunway DCS Sdn Bhd to Sunway Bhd’s facilities management subsidiary, Sunway Property & Facility Management Sdn Bhd (SPFM), for RM10.98 million in cash.
The transaction, part of an intra-group restructuring exercise, will allow SunCon to streamline its operations and focus on its core construction and related services, the company said in a Bursa Malaysia filing on Friday.
Sunway, in a separate filing, said the acquisition will strengthen SPFM’s recurring income base by bringing the district cooling project under its portfolio. SunCon highlighted that the divestment — carried out at cost — is a strategic move to reallocate resources to areas where the group has stronger competitive advantages.
SPFM, a wholly owned subsidiary of Sunway City Sdn Bhd, said the purchase is aligned with its long-term expansion strategy and will enhance service efficiency within its facilities management business.
Engie-Sunway is currently held by ECM Cooling Sdn Bhd (60%) and Sunway SK Sdn Bhd (40%), an indirect subsidiary of SunCon. Its core activities include the engineering, financing, construction, operation, and maintenance of district cooling systems for Sunway’s South Quay Commercial Precinct 2.
Sunway holds a 53.5% stake in SunCon through Sunway Holdings Sdn Bhd. The disposal is not expected to materially impact SunCon’s earnings for the financial year ending Dec 31, 2025. Proceeds will be used to support its general working capital needs. The deal is expected to be completed by the fourth quarter of 2025.
On Friday, SunCon shares closed 10 sen or 1.55% lower at RM6.36, valuing the group at RM8.38 billion. Sunway’s stock rose two sen or 0.38% to RM5.31, with a market capitalisation of RM33.3 billion.
