GDB Group acquires 70% stake in Malaysian piling player [Press Release]

  • RM5.964 million acquisition of Eco Geotechnics Sdn Bhd adds bored piling and foundation works to in-house capabilities

Kuala Lumpur, Malaysia, 23 July 2019 – Construction services firm GDB Holdings Berhad (GDB,控股有限公司, Bloomberg: GDB:MK, Reuters: GDBH.KL) and its wholly-owned subsidiary announced the acquisition of 70% controlling stake in Eco Geotechnics Sdn Bhd (“Eco Geotechnics”) via a share sale agreement between GDB and shareholders of Eco Geotechnics.

Founded in 2011, Eco Geotechnics is a construction contractor specialising in major geotechnical and foundation engineering works, which includes bored, caisson and micro piling solutions, diaphragm walls, earth retaining systems, soil treatment, earthworks, basement works as well as general construction.

To date, Eco Geotechnics has successfully delivered more than RM240 million worth of piling and foundation works for construction and property development firms the likes of Tropicana, Hap Seng, Sunway, IJM, Hua Yang, Hatten Group, UEMC, and Gabungan AQRS.

Eco Geotechnics’ past projects include works for Tropicana Garden, Sunway Velocity, Tropicana underpass tunnel along Persiaran Surian, Sunway South Quay, Horizon Tower in Bangsar, One South in South City, as well as jobs for Mass Rapid Transit (MRT) line 1 and Light Rapid Transit (LRT) 2. Eco Geotechnics also has completed the first deep basement project in Melaka.

Mr. Cheah Ham Cheia (谢汉正), Managing Director of GDB Holdings Berhad said:

“Adding Eco Geotechnics’ bored piling and foundation works speciality to our
in-house capabilities would certainly strengthen our competitive edge of being a leading builder of high-rise and large-scale construction projects.

Together, this acquisition will provide vast synergistic benefits of being an enlarged entity with integrated construction services that would enable us to cater to a larger clientele base.

On top of that, it would also significantly boost our tendering prospects especially for sub-structure works as well as projects which separate tenders for sub-structure and superstructure jobs. This bodes well for the Group, as we aim to capture opportunities of the returning tender activities within the construction and property development sector.”

Eco Geotechnics holds a Grade G7 License from the Construction Industry Development Board of Malaysia which allows it to tender for projects with unlimited value.

Eco Geotechnics has over 30 units of piling and foundation work machinery comprising piling rigs, hydraulic excavators, vibratory hammers, crawler cranes and boring tools.

The RM5.964 million acquisition of Eco Geotechnics will be financed through internally generated funds. This acquisition is not subjected to approvals from shareholders of GDB.

Barring any unforeseen circumstances, the acquisition is estimated to be completed in the fourth quarter of 2019. Hence, the acquisition is expected to contribute positively towards GDB’s earnings going forward.

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