Widad to acquire Palm Shore for RM35 mln consideration

KUALA LUMPUR: Widad Group Bhd has entered into a conditional share sale agreement for the proposed acquisition of 100 per cent equity interest in Palm Shore Holdings Sdn Bhd (PSHSB) comprising 7.0 million ordinary shares for RM16.63 million to be satisfied in cash.

In a Bursa Malaysia filing today, the group also undertook to repay PSHSB’s debts amounting to RM18.34 million, which collectively with the cash proceeds, forms a total consideration sum of RM35 million.

PSHSB holds the concession of the Royal Malaysian Navy integrated training centre, also known as TLDM KD Sri Medini Complex, in the Johor Bahru district, and which has a remaining concession period of 17 years and eight months worth RM272.74 million. The concession ends on Dec 20, 2039.

Widad said the proposed acquisition is in line with the group’s principal activities of construction and integrated facilities management, and represents “a strategic opportunity” for the company to “further strengthen its remaining order book by about RM1.84 billion”, and diversify its integrated facilities management services offerings. — Bernama