Investors welcomed Gamuda Bhd's announcement of the acquisition of the Australian transport project business on Wednesday.
As a result, Gamuda shares soared in today's trading, trading firmly at RM4.32 after gaining 25 sen or 6.16%, with a market value of RM11.30 billion (as of 12.00 noon).
Earlier, its wholly-owned Australian subsidiary DR Infrastructure Pty Ltd announced it had taken over the Downer Transport Project (DTP) business with an enterprise value of A$212 million (RM636 million).
DTP provides civil construction services in delivering transport projects with a specialization in rail.
MIDF Research said the acquisition is in line with Gamuda's long-term goal of strengthening its position in the country.
This is because, DTP also specializes in track infrastructure, rail maintenance and road and bridge construction, and most of its clients are also usually from the government.
Therefore, the research firm raised the target price (TP) for Gamuda shares to RM5.04 from RM4.67 previously.
