Ideal Jacobs to diversify into facilities management, construction

PETALING JAYA: Ideal Jacobs (Malaysia) Corp Bhd has proposed to acquire Widad Builders Sdn Bhd, in a move which will see it diversify into the integrated facilities management and construction business.

In a filing with Bursa Malaysia yesterday, Ideal Jacobs said it has entered into a non-binding heads of agreement with Widad Business Group Sdn Bhd for the proposed acquisition, and will negotiate and conclude a definite sale and purchase agreement within 45 days.

The two parties will mutually agree on the total purchase consideration for the proposed acquisition before the execution of the SPA. Ideal Jacobs will satisfy the consideration via the issuance of new ordinary shares in the company (consideration shares) at an issue price of 23 sen per share and/or any other means as the parties may mutually agree.

The proposed acquisition is subject to a business, financial and legal due diligence to be conducted on Widad Builders. It is also subject to approval from Bursa Securities and the parties’ shareholders.

Ideal Jacobs and its subsidiaries are principally involved in manufacturing and trading of industrial products, nameplates and laser/die-cut products; fabrication of plastic parts; research and development, production and trading in photo luminescent products and services; and marketing and trading of smartphone components.

Upon completion of the proposed acquisition, Widad Builders’ business may in the future contribute more than 25% of the group’s net profits. Accordingly, the group intends to seek shareholders’ approval for the proposed diversification.