WZ Satu to acquire SILK SB

PETALING JAYA: WZ Satu Bhd yesterday entered into a heads of agreement (HOA) with SILK Holdings Bhd to acquire the entire share capital of Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (SILK SB) for RM368 million.
SILK SB is a single-purpose company that holds the concession to design, construct, operate and maintain the Kajang Traffic Dispersal Ring Road.
The purchase consideration for the proposed acquisition will be satisfied via RM239.25 million cash and the issuance of 125 million shares of 50 sen each in WZ Satu at an issue price RM1.03 per share.
The proposed acquisition will not result in a significant change of business direction of the company as it is the intention of WZ Satu to acquire SILK SB together with other co-investor(s) to be identified, on the basis that WZ Satu will be the majority shareholder.
“It is the intention of WZ Satu at this juncture that the cash portion of the consideration will be substantially funded directly by the co-investor(s) and the remaining portion will be funded by the company’s internal cash and/or fund raising, which may include a rights issue and/or placement of new shares,” WZ Satu said in a filing with the stock exchange.
The parties have agreed to enter into and execute the HOA, upon the terms and subject to the conditions contained in the HOA and a definitive share sale agreement and shareholders’ agreement to be entered into between the vendor and WZ Satu and/or its nominee(s) and/or its co-investor(s).