Meta Bright diversifies into building materials trade via RM28 mil acquisition

• The purchase of the stake in Expogaya Sdn Bhd (Expo) will be settled via a cash consideration of RM5 million and the issuance of 98 million new shares in Meta Bright at 23.4 sen each, said Meta in a bourse filing. 

KUALA LUMPUR (Oct 27): Meta Bright Group Bhd has proposed to diversify into the building materials trade through the acquisition of a 70% stake in a ready-mixed concrete manufacturing business in Sabah for RM28.04 million.

The purchase of the stake in Expogaya Sdn Bhd (Expo) will be settled via a cash consideration of RM5 million and the issuance of 98 million new shares in Meta Bright at 23.4 sen each, said Meta in a bourse filing. 

The Expo group of companies is primarily involved in the manufacturing, trading and supplying of ready-mixed concrete with Expo’s 16 batching facilities strategically located near major hubs of construction activity in Sabah.

“Via Expo’s other subsidiaries and associate companies that manufacture and supply other building materials such as cement sand brick, sand, and stone, the proposed acquisition would transform the group into a significant vertically integrated player in the broader construction sector.

“With this vertical merger and acquisition move, Meta’s property development business division is also able to secure access to reasonably priced materials for its activities, thereby remaining competitive,” said Meta.

The group is currently involved in hotel operations, property investment, property development, renewable energy and energy efficiency-related businesses, money lending as well as leasing of machineries and equipment and hire purchase.

As at end-June, Meta had audited cash and cash equivalents of RM33.6 million.

For the financial year ended June 30, 2023, Meta’s net profit jumped 89.88% to RM8.67 million from RM4.57 million in the previous year, as revenue grew 32.53% to RM34.07 million from RM25.7 million.

Meta’s share price closed unchanged at 26 sen on Friday, valuing the group at RM617.14 million. The counter has risen over 52% year-to-date.

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