KUALA LUMPUR: Widad Group Bhd has gained concession rights to develop and maintain UiTM Jasin campus in Melaka by buying 90 per cent in Serendah Heights Sdn Bhd (SHSB) for RM95.89 million.
The acquisition will be satisfied via RM86.3 million cash and issuance of new Widad shares.
Widad, in a statement today, said 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 would be raised from a combination of internally generated fund and bank borrowings.
SHSB owns YBK Usahasama Sdn Bhd, which had in May 2010 entered into a concession agreement with the government and Universiti Teknoloji MARA to develop the facilities and infrastructure, and carry out maintenance works for the UiTM Campus in Jasin.
YBKU has remaining concession period of 14 years ending 2034 totalling RM861.6 million.
Pursuant to the HOA, Widad and the vendors agreed to negotiate and finalise all terms of the definitive agreement pertaining to the planned acquisition within two months.
Widad said the proposed acquisition was in line with its principal activities of construction and integrated facilities management.
“It represents a strategic opportunity for the company to strengthen its remaining orderbook from RM910 million currently to RM1.8 billion.”
The proposed acquisition is expected to be completed in the first quarter of 2020.