PETALING JAYA: Widad Group Bhd will gain another integrated facilities management concessionaire worth RM838 million, following the inking of a heads of agreement (HOA) to acquire 100% equity interest in Innovatif Mewah Sdn Bhd (IMSB) for RM122 million in cash.
The acquisition will bring the group’s total order book to about RM3 billion.
Widad group executive chairman Datuk Feizal Mustapha (pix) said this corporate exercise is the second acquisition of such concessionaires after the group bought Serendah Heights Sdn Bhd in October.
“It represents a strategic opportunity for us to further strengthen our IFM segment which is currently the biggest revenue contributor for the company at about 50%.”
“The cash consideration for the purchase of IMSB shall be raised from a combination of internally generated funds and bank borrowings,” he said in a statement.
In a filing with Bursa Malaysia today, Widad had entered into the agreement with the shareholders of IMSB, namely Menang Development (M) Sdn Bhd (MDSB), Menang Industries (M) Sdn Bhd (MISB) and Tentu Selesa Sdn Bhd (TSSB).
Both MDSB and MISB are wholly-owned subsidiaries of Menang Corporation Bhd.
The proposed acquisition is expected to be completed within 8 months from the execution of the HOA.
IMSB is a private limited company incorporated for the purpose of development of facilities and infrastructure and carrying out maintenance works.
IMSB had entered into a concession agreement with the government and Universiti Teknoloji MARA (UiTM) on May 4, 2010 to develop facilities, infrastructure, and carry out maintenance works for the UiTM Campus Seremban 3 in Negeri Sembilan.
Currently IMSB has a remaining concession period of another 14 years ending January 2034.
To recap, Widad had announced in October on its acquisition of 90% equity interest in Serendah Heights Sdn Bhd for RM95.89 million.
Serendah Heights owns 100% shares in YBK Usahasama Sdn Bhd that has a concession to develop the facilities and infrastructure and to carry out maintenance works for the ÜiTM Campus in Jasin, Melaka.
Currently YBK Usahasama has remaining concession period of another 14 years ending 2034, totalling RM861.6 million.
Upon completion of the two acquisitions, Widad Group’s total order book will be approximately RM3 billion.
