KUALA LUMPUR: Widad Group Bhd (WGB) signed two conditional shares sales agreement (SSA) to acquire 100 per cent equity interest in Serendah Heights Sdn Bhd (SHSB) for RM127.02 million.
WGB managing director Dato’ Mohd Rizal Mohd Jaafar said the acquisition is in line with the company’s principal activities which are construction and integrated facilities management.
"This is part of our corporate expansion strategy to strengthen the Group’s revenue stream and cash flow positions in the long run as well as possess more solid long-term assets.
"WGB has been in this business for more than 20 years and our top projects have been the servicing of Istana Negara and JB Sentral.
"This new opportunity to develop and service the UiTM Campus in Jasin, Melaka is a chance for us to diversify our service offerings into the education industry and strengthen our order book from approximately 900 million currently to RM1.8 billion post-acquisition," he said in a recent statement.
According to a Bursa Malaysia filing, WGB had entered into the first SSA with the shareholders of SHSB, namely Prihatin Ehsan Holdings Sdn Bhd and Training Camp Aabata Sdn Bhd for the acquisition of an aggregate of 90 per cent equity interest or 4,500,000 ordinary shares in SHSB for RM114.62 million via cash and issuance of new ordinary shares in WGB.
The second SSA with Just Wisdom Sdn Bhd is for the remaining 10 per cent equity interest or 500,000 ordinary shares for RM12.40 million in cash.
SHSB holds and owns 100 per cent shares in YBK Usahama Sdn Bhd (YBKU), which had entered into a concession agreement with the government and Universiti Teknologi MARA (UITM) on 4 May 2010 to develop the facilities and infrastructure and to carry out maintenance works for the UiTM Campus in Jasin, Melaka.
Currently YBKU has remaining concession period of another fourteen years ending 2034 totalling RM861.6 million.
WGB has been active in the business since the 90’s and has diversified into many sectors such as construction and facility management.
The diversification is done to fulfil the growing needs for calibre Bumiputera contractors to serve the country’s rapid growth.