GK GOH Holdings has bought a 13.6 per cent stake in Malaysian-listed cement company Tasek Corporation Bhd for about RM86m (S$37m).
It said yesterday that it bought the stake of 24.9 million shares through its wholly owned subsidiary Canistel Pte Ltd. Most of the shares were acquired through a block trade, with additional shares acquired through the stock market, said GK Goh.
The average consideration is RM3.43 per share, marginally lower than Tasek’s book net tangible assets per share of RM3.46.
’Based on Tasek’s earnings for the year ended June 30, 2006, the purchase price is at a historic price-earnings ratio of 19.5 times,’ said GK Goh.
Tasek, one of four leading cement groups in Malaysia, also owns 30 per cent of Cement Industries (Sabah) and 17 per cent of Singapore-listed Jurong Cement.
GK Goh’s directors believe that Malaysia’s cement industry will grow steadily in the years ahead, with additional demand coming from the property and infrastructure sectors. The major projects in the 9th Malaysia Plan are also expected to boost cement usage.