PETALING JAYA: Widad Group Bhd is acquiring a 90% stake in Serendah Heights Sdn Bhd (SHSB) for RM95.89 million.
The acquisition will be satisfied via RM86.3 million cash and the issuance of new Widad shares.
Widad told Bursa Malaysia that it had entered into a heads of agreement (HOA) with SHSB’s shareholders namely Prihatin Ehsan Holdings Sdn Bhd and Training Camp Aabata Sdn Bhd for the acquisition.
Widad said the purchase sum will be raised from a combination of internally generated fund and bank borrowings.
SHSB holds YBK Usahasama Sdn Bhd, which had in May 2010 entered into a concession agreement with the Malaysian government and Universiti Teknoloji MARA to develop the facilities and infrastructure and to carry out maintenance works for the UiTM Campus in Jasin, Malacca.
Currently YBKU has remaining concession period of another 14 years ending 2034 totalling RM861.6 million.
Pursuant to the HOA, Widad and the vendors have agreed to exercise their best endeavour to negotiate and finalise all terms of the definitive agreement pertaining to the proposed acquisition within two months.
Widad said the proposed acquisition is in line with the group’s principal activities of construction and integrated facilities management.
“It represents a strategic opportunity for the company to strengthen its remaining order book from approximately RM910 million currently to RM1.8 billion post proposed acquisition and diversifying its service offerings into the education industry.”
The proposed acquisition is expected to be completed in the first quarter of 2020.
At the noon break, Widad’s share price gained 1.4% to 35 sen on 3.68 million shares done.
