Gamuda Opportunities

OPPORTUNITIES

Aquisition Synergies (Gamuda)

What is acquisition synergies? -A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own. Acquisitions are often paid in cash, the acquiring company's stock or a combination of both. The concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts. Synergy is a term that is most commonly used in the context of mergers and acquisitions. Synergy, or the potential financial benefit achieved through the combining of companies, is often a driving force behind a merger. Shareholders will benefit if a company's post-merger share price increases due to the synergistic effect of the deal. The expected synergy achieved through the merger can be attributed to various factors, such as increased revenues, combined talent and technology, or cost reduction.

"Aquisition Synergies (Gamuda)" will have a long-term positive impact on the this entity, which adds to its value.

1. Mass Rapid Transit Corporation Sdn Bhd has signed the RM8.28bil deal with MMC-Gamuda KVMRT (T) Sdn Bhd for the underground works of the MRT Sungai Buloh-Kajang Line.

MMC-Gamuda KVMRT underground works include the construction of tunnels, stations and associated structures along this stretch, value at RM8.28bil which is a 50:50 joint venture between MMC Corporation Bhd andGamuda Bhd. This agreement between this two companies was for the design, construction and completion of the underground works located between the Semantan north portal and Maluri south portal. MRT Corp said phase one of the line from Sungai Buloh to Semantan would be operational by end-2016 and phase two from Semantan to...