Southern Score Builders Berhad (Bursa: SSB8, 0045), a former Guidance Note 3 (GN3) company, has completed its regularisation plan which involves, amongst others, the acquisition of Southern Score Sdn Bhd (SSSB), a G7 contractor. Following the acquisition, Southern Score Builders will be involved the provision of construction management services mainly for high-rise residential buildings. Shares of the Company also resumed trading after being suspended since December 2020.
Led by an experienced and technically strong management team, SSSB adopts construction practices that support the efficiency optimisation of its construction projects. It adopts industrialised building system (IBS) in most of its development and construction projects which is aimed at increasing productivity and improving quality of its projects. Besides that, by leveraging on its asset-light and flexible delivery model, SSSB is able to offer a standardised and cost-efficient building process which enables scalability and flexibility with lower exposure to cyclicality and house prices.
SSSB recorded net profit of RM6.51 million, RM19.20 million and RM35.18 million in the financial years ended 31 December 2019, 2020 and 2021 respectively, and realised net profit margin of 9.7%, 12.9% and 12.3% in the 3 years.
The regularisation plan involved, amongst others, the acquisition of the entire equity interest in SSSB from Super Advantage Property Sdn Bhd for a purchase consideration of RM252.0 million satisfied via the issuance of 1.68 billion consideration shares. Super Advantage, being the vendor of SSSB, has provided cumulative net profit guarantee of RM80.0 million over the three-year period from 2022 to 2024.
Other than the acquisition, the completed regularisation plan also entailed the following:
– consolidation of every ten existing shares in Southern Score Builders into one consolidated share;
– settlement of debt amounting to RM3.1 million to Mr. Chai Tham Poh, an Executive Director of Southern Score Builders, via the issuance of 20.67 million of settlement shares;
– private placement of 543.05 million shares at an issue price of RM0.20 per share to identified investors; and
– exemption under the take-over rules from the obligation to undertake a mandatory take-over offer for the remaining Southern Score Builders shares not already owned by Super Advantage as well as Tan Sri Datuk Seri Gan Yu Chai and Gan Yee Hin (“Exemption”).
The completion of the Regularisation Plan will allow the Company to return to a better and stronger financial standing and profitability. Further, the acquisition of SSSB will allow the Company to diversify its business into construction management services whereby the Company is expected to benefit from expected recovery in the construction sector.
The shareholders of Super Advantage are Tan Sri Datuk Seri Gan Yu Chai, the Managing Director of Southern Score Builders, a veteran in the construction and property development industries with more than 30 years’ experience as well as Gan Yee Hin, the Executive Director and Chief Executive Officer of Southern Score Builders.
Executive Director and Chief Executive Officer of Southern Score Builders, Gan Yee Hin, said, “We would like to thank Bursa Securities for their guidance and support throughout the progression of regularisation plan. Our thanks also go to Kenanga Investment Bank Berhad, the principal adviser, sponsor and placement agent in relation to the regularisation plan and to Malacca Securities Sdn Bhd, the independent adviser for the Exemption. We would also like to acknowledge the work of the other professionals who worked diligently to ensure the successful completion of the regularisation plan.”
“As a listed entity, Southern Score Builders will be able to further expand our construction services while leveraging on our expertise and business network. We are also intensifying our venture in IBS production through the construction of a manufacturing plant as we see demand growing from the construction sector.”
About Southern Score Builders Berhad (formerly known as G Neptune Berhad)
Southern Score Builders is principally involved in the provision of construction management services mainly in Kuala Lumpur. The scope of Southern Score Builders’ construction services involves the provision of professional project management services from project initiation until the completion of construction works. These services encompass project initiation, planning and design, appointment of subcontractors, procurement; construction project management as well as inspection and completion handover. To-date, via SSSB, Southern Score Builders has completed several projects including, amongst others, the PR1MA Jalan Jubilee project. SSSB is a CIDB Grade 7 contractor. https://southernscore.com.my/
Image Caption for Picture 1
https://www.acnnewswire.com/topimg/Low_SouthernScore202211109.jpg
From L-R:
Mr. Cheah Hannon, Independent Non-Executive Director of G Neptune Berhad
Ms. Yvonne Phe Kheng Peng, Independent Non-Executive Director of Southern Score Builders Berhad
Mr. Chai Tham Poh, Executive Director of G Neptune Berhad
Tan Sri Datuk Seri Gan Yu Chai, Managing Director of Southern Score Builders Berhad
Mr. Gan Yee Hin, Executive Director and Chief Executive Officer of Southern Score Builders Berhad
Datuk Sydney Lim Tau Chin, Executive Director of Southern Score Builders Berhad
Dato’ Haji Mohd Amran Bin Wahid, Non-Independent Non-Executive Chairman of G Neptune Berhad
Ms. Amy Too Siew Mooi, Independent Non-Executive Director of Southern Score Builders Berhad
Image Caption for Picture 2
https://www.acnnewswire.com/topimg/Low_SouthernScore2022111092.jpg
From L-R:
Mr. Cheah Hannon, Independent Non-Executive Director of G Neptune Berhad
Dato’ Haji Mohd Amran Bin Wahid, Non-Independent Non-Executive Chairman of G Neptune Berhad
Datuk Sydney Lim Tau Chin, Executive Director of Southern Score Builders Berhad
Tan Sri Datuk Seri Gan Yu Chai, Managing Director of Southern Score Builders Berhad
Mr. Gan Yee Hin, Executive Director and Chief Executive Officer of Southern Score Builders Berhad
Mr. Chai Tham Poh, Executive Director of G Neptune Berhad
Ms. Yvonne Phe Kheng Peng, Independent Non-Executive Director of Southern Score Builders Berhad
Ms. Amy Too Siew Mooi, Independent Non-Executive Director of Southern Score Builders Berhad
Topic: Press release summary