KUALA LUMPUR: Southern Score Builders Bhd has completed its regularisation plan which involves, among others, the acquisition of Southern Score Sdn Bhd (SSSB), a G7 contractor.
Southern Score was formerly a Guidance Note 3 (GN3) company.
In a statement today, the company said following the acquisition, it would be involved in 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.
Executive director and chief executive officer Gan Yee Hin said as a listed entity, Southern Score would be able to expand its construction services while leveraging on its expertise and business network.
"We are also intensifying our venture in industrialised building system (IBS) production through the construction of a manufacturing plant as we see demand growing from the construction sector," he said.
Southern Score said SSSB had adopted IBS in most of its development and construction projects to improve productivity and quality.
SSSB recorded a net profit of RM6.51 million, RM19.20 million and RM35.18 million in the financial years ended Dec 31, 2019, 2020 and 2021 respectively, and a realised net profit margin of 9.7 per cent, 12.9 per cent and 12.3 per cent in the three years.
Southern Score's regularisation plan involved, among others, the acquisition of the entire equity in SSSB from Super Advantage Property Sdn Bhd for RM252 million, which was satisfied via the issuance of 1.68 billion shares.
Super Advantage, being the vendor of SSSB, has provided a cumulative net profit guarantee of RM80 million over the three-year period from 2022 to 2024.
The completed regularisation plan also entailed the consolidation of every 19 existing shares in Southern Score Builders into one consolidated share and the settlement of debt amounting to RM3.1 million to Southern Score executive director Chai Tham Poh.
The settlement was done via the issuance of 20.67 million settlement shares.
The regularisation plan also involved a private placement of 543.05 million shares at an issue price of 20 sen per share to identified investors.
"The completion of the regularisation plan will allow the company to return to a better and stronger financial standing and profitability."
