KUALA LUMPUR: Econframe Bhd is proposing to acquire a 70% stake in ETA World Sdn Bhd (ETAW) from ETA Industries Sdn Bhd for RM56mil, as part of its move to diversify the group’s business into construction services and property development.

       In a filing with Bursa Malaysia, Econframe said RM28.1mil will be satisfied in cash and the remaining RM27.9mil shall be satisfied via the issuance and allotment of 30 million new ordinary shares in Econframe at an issue price of 93 sen per consideration share.

       Econframe said ETAW is an industrial property builder, providing turnkey solutions, specialising in design and building of industrial buildings and related activities.

       “Presently, the Econframe group is principally involved in the provision of total door system solutions for property development.

       “The proposed acquisition represents an opportunity for the group to venture into construction services and/ or property development, specifically, into industrial properties in view of the favourable outlook and prospects of the industrial property market in Malaysia.”

       Additionally, Econframe said the proposed acquisition will provide the group with an opportunity to diversify its earnings base.

       “The proposed acquisition allows the Econframe Group to tap into ETAW？s expertise in the construction and property development of industrial properties, enabling the enlarged group to take advantage and ride on the favourable prospects of the industrial property market.

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       “The board notes ETAW？s total solution offering which involves the industrial property development play and is of the view that its asset-light approach is a safe way of expanding and participating in the industrial property development theme,” said Econframe.