Advancecon in talks with potential M&A partners

KUALA LUMPUR: Earthworks and civil engineering services specialist Advancecon Holdings Bhd is talking with potential merger and acquisition partners.

Advancecon chief operating officer Yeo An Thai told StarBiz at Invest Malaysia 2019 that the company is looking to diversify its businesses horizontally or in the downstream segment.

The companies that we are interested in are those that offer geotechnical and piling services, or even those involved in super structures, like the construction of bridges. The potential M&A shall enable us to widen our scope as an earthworks specialist.

“We are still looking for prospective companies, and it will be ideal to find companies that can provide synergies to our current business as well as high margins and recurring income,” he said.

Going forward, Yeo reckoned that the second half of 2019 will see more projects in the pipeline.

The group is confident of securing projects with an internal replenishment target of RM300mil.

Advancecon has a tender book value of RM1.5bil, of which 70% comprise infrastructure projects. The remaining 30% are property development projects, which are mainly derived from its repeat customers.

Of the 70% portion, half of the infrastructure projects are located in East Malaysia. The group has an order book of RM845mil, which provides earnings visibility for the next two years.

Source: TheStar