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Saudi firm buys 22% of Gefung for RM55.5mil
Star Publications, 3 August 2007
KUALA LUMPUR: Saudi Economic & Development Co (SEDCO) has acquired a 22% stake in marble products manufacturer Gefung Holdings Bhd from founder and managing director Jeffery Seo Aik Leong in a direct deal worth RM55.5mil.
The acquisition involved the sale by Seo of 34 million shares at RM1.63 each, according to data obtained from the stock exchange.
“SEDCO can add value to Gefung given its strong market presence in the Middle East-North Africa region,'' Seo said in a company statement yesterday. “In fact, we are already exploring a number of projects there.''
Gefung's principal operation is in Shanghai, China where its main plant has the capacity to produce 560,000 sq m of granite and marble products a year. It also has a local factory in Taiping, Perak with an annual capacity of 120,000 sq m.
Jeddah-based SEDCO owns more than 300 properties, including shopping centres, luxury apartments, hotels, as well as industrial and office buildings in the Middle East, North America, Europe and the Far East.
“We are impressed with the tremendous potential growth of Gefung's marble business, especially in China and new markets such as the Middle East and Kazakhstan,'' direct investment group managing director Yousuf Khayat said in the statement.
Last year, SEDCO bought a substantial stake in Mesdaq-listed Green Packet Bhd.
Gefung was floated on Bursa Malaysia second board in November last year following the reverse takeover of Jin Lin Wood Holdings Industries Bhd.
Post-acquisition, Seo's stake in Gefung will be reduced to 44% but he remains the company's single largest shareholder.
Shares in Gefung fell two sen to RM1.72 yesterday on volume of 3.46 million shares.
The group posted a net profit of RM15.3mil, or 9.9 sen per share, on turnover of RM57.6mil for the year ended Dec 31, 2006.
