Crest Builder says UiTM concession company still has 11-year maintenance works contract remaining

• The maintenance works form part of a concession agreement inked between UniTapah with the Malaysian government and Universiti Teknologi Mara (UiTM) back in May 2010, Crest Builder said in its filing.

KUALA LUMPUR (Dec 6): UniTapah Sdn Bhd, in which Crest Builder Holdings Bhd is buying the remaining 49% stake for RM43.61 million, has 11 years remaining on its maintenance works contract for the UiTM campus in Tapah, Perak.

The maintenance works form part of a concession agreement inked between UniTapah with the Malaysian government and Universiti Teknologi Mara (UiTM) back in May 2010, Crest Builder said in its filing.

The valuation of UniTapah’s 49% equity interest was determined based on future discounted cash flow methods, Crest Builder said.

The assumptions include pre-tax discount rate of 16.6%, a 20-year duration, and a terminal value of RM nil, it added.

In terms of financial performance, UniTapah’s net profit, attributable to operating financial asset, rose to RM5.43 million in the financial year ended Dec 31, 2022 (FY2022), from RM2.94 million in FY2021.

However, profit before tax (PBT) fell year-on-year (y-o-y) to RM8.84 million, from RM9.1 million, while revenue fell 4.16% to RM43.76 million, from RM45.66 million in FY2021.

Crest Builder is acquiring the remaining 49% stake from Detik Utuh Sdn Bhd.

Detik Utuh is in turn owned by Tindakan Juara Sdn Bhd (40%), Obata-Ambak Holdings Sdn Bhd (35%), and Vignesh Naidu Kuppusamy Naidu (25%).

Obata-Ambak holds a 0.21% stake in Crest Builderwhile Vignesh owns 0.31% in the company.

Tindakan Juara’s 35% shareholder Datin Sri Rahayu Tajuddin also owns 0.57% in Crest Builder.

Crest Builder intended to fund the acquisition primarily via the balance proceeds of its Sukuk Murabahah. The group has a facility of RM510 million in nominal value, of which RM303.19 million has been drawn down as at end-September this year.

Crest Builder’s shares settled up half a sen or 1.08% to 47 sen, giving the group a market capitalisation of RM83.15 million. Shares of the company, which has been loss-making since 2020, is down 4.08% this year.

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