KUALA LUMPUR, Nov 3 — Integrated facilities management company GFM Services Bhd (GFM) has entered into a share sale agreement (SSA) to acquire the remaining 51 per cent stake in Highbase Strategic Sdn Bhd (Highbase) for RM18.2 million.

Highbase specialises in the provision of oil and gas (O&G) facilities maintenance, focusing on downstream operators.

GFM managing director Ruslan Nordin said through the strategic acquisition, GFM will be well-positioned to secure future prospects in the O&G sector and replenish its project pipeline.

"Highbase’s operations are aligned with GFM’s core competency in integrated facilities management services, unlocking synergistic benefits.

"By integrating Highbase’s resources and expertise into the group’s portfolio, we are poised to solidify our market position with the expansion of customer base and scope of services,” he said in the statement today.

GFM initially entered as an investor in Highbase in December 2019 via the subscription of Highbase’s redeemable convertible preference shares (RCPS) of RM20 million.

On June 30, 2023, GFM completed the acquisition of a 49 per stake in Highbase via the subscription of 2.9 million new Highbase shares for RM1.

The proposed acquisition exercise is expected to be completed by the end of 2023, making Highbase a wholly-owned subsidiary of GFM.

"Over a three-year period, Highbase demonstrated a remarkable compound annual growth rate (CAGR) of 95 per cent in revenue. The revenue increased from RM7.4 million in financial year of 2020 (FY2020) to RM28.1 million in FY2022,” GFM said. — Bernama