SINGAPORE (Mar 17): Libra Group, the specialist in electrical, air-conditioning, mechanical ventilation and fire protection works for building, says it has entered into a conditional sale and purchase agreement to acquire 1.5 million shares of Cyber Builders, representing 100% of the issued and paid-up share capital of the company for $999,900.

Incorporated in Singapore, Cyber Builders is a limited exempt private company primarily engaged in building construction activities as a general contractor with BCA main contractor grading of C1. At C1 level, Cyber Builders is allowed to tender for public sector projects up to$4.2 million. The unaudited net asset value of the company was $0.34 million as at 31 December 2014 and it recorded an unaudited loss before tax of $0.71 million for the financial year ended 31 December 2014 (FY2014).

Libra Group says the consideration shall be satisfied by the issuance of about 4.5 million new shares in the company, representing about 3.81% of the enlarged issued share capital of the company, at an issue price of 22 cents each. The issue price is equivalent to the volume weighted average price of 22 cents for each share, based on trades done on March 13, the last full market day prior to the signing of the agreement.

Despite Cyber Builders’ loss-making position in FY2014, Libra’s board is of the view that the acquisition is in the interests of the group.

“The losses were mainly attributable to rising costs of materials, staff costs incurred and low revenue given the Target’s lack of financial capacity to secure more contracts,” says Libra, “The Board also sees potential in the Target in light of the potential upgrading of its BCA main contractor grading to B1 which would increase the Target’s tender capacity for public sector projects to up to $42 million, as well as recent projects secured by the Target and potential new projects under negotiation.”

On February 23, Cyber Builders exercised an option to purchase a property located at 34 Sungei Kadut Loop, Singapore 729488. Libra says it intends to allow Cyber Builders to proceed with the property completion.

Libra Group closed 2.3% higher at 23 cents.