IJM Corp ventures into energy transmission via a stake acquisition in Pestech

24 Jul 2023

IJM Corporation Bhd is expanding into the energy transmission sector via an acquisition of 44.8 per cent stake in Pestech International Bhd for RM124 million.

In a statement, the company said the investment aligned with its growth strategy to expand its business into an adjacent vertical since its divestment of IJM Plantations Bhd in September 2021 – complementing its construction capabilities, diversifying its value chain portfolio and gaining exposure to a robust and growing sector in the region.

Chief executive officer and managing director Lee Chun Fai said by including Pestech’s capabilities into its diversified portfolio, both parties will create synergies and deliver comprehensive solutions to customers across various sectors.

“Together, we are well-positioned to strengthen our position in the industry, diversify revenue streams and drive sustainable growth,” said Lee.

For the rail sector, it noted the combined capabilities of both companies as civil and systems contractors enable the offering of more comprehensive and turnkey solutions for local and international rail project bids.

IJM has a proven track record in the construction of various railway developments in Malaysia, including the Mass Rapid Transit (MRT), Light Rapid Transit, Keretapi Tanah Melayu and monorail projects, while Pestech’s rail electrification and systems portfolio includes MRT 2, Rapid Transit System (RTS) Link between Malaysia and Singapore and the Klang Valley Double Track (KVDT) projects.

Source: NST