SCH to buy event equipment firm for RM50m

PETALING JAYA: SCH Group Bhd is planning to buy the entire equity interest in TK Tent & Air-Conditioning Rental Sdn Bhd for RM50 million cash, as it intends to diversify into event equipment supply business.
TK Tent is principally involved in the provision of event related equipment rental and trading of temperature control systems, energy products/equipment and other event equipment such as tents, furniture, stage, platform, portable toilets and decoration.
The company’s event equipment are mainly used by trade fairs/shows, exhibitions, office buildings, conventions and national level events held in Malaysia and Asia.
In a filing with Bursa Malaysia, SCH said it has entered into a conditional share sale agreement with Hextar Holdings Sdn Bhd for the proposed acquisition.
In conjunction with the proposed acquisition, the board also proposes to seek shareholders’ approval to diversify its existing business to include the event equipment supply business segment.
Currently, SCH is principally engaged in the business of distribution and supplying of quarry industrial products, machinery and equipment as well as supply of spare parts to the quarry industry in Malaysia and South East Asia.
SCH said the proposed diversification is in line with the group’s plans to diversify its earnings base and enhance its revenue and profitability.
“By diversifying into new business segment, the SCH Group is able to mitigate its dependence on its existing business portfolio and activities,” it added.
SCH expects the proposed acquisition to contribute more than 25.0% of the net profits and/or net assets of the group.
The proposals are expected to be completed/effected by the second quarter of 2018.
SCH gained two sen or 9.3% to 23.5 sen today with 10.3 million shares traded.