WIDAD (0162) WIDAD GROUP BERHAD completes acquisition of UiTM concession holder Serendah Heights
KUALA LUMPUR (March 19): Widad Group Bhd has completed the acquisition of Serendah Heights Sdn Bhd (SHSB), boosting its order book to RM1.5 billion.
In a statement today, the construction and integrated facilities management company said that SHSB is a concession holder for the development, construction and maintenance of the Universiti Teknologi MARA (UiTM) campus in Jasin, Melaka.
SHSB holds the concession agreement via its wholly-owned subsidiary YBK Usahama Sdn Bhd (YBKU), which entered into a concession agreement with the government and UITM in May 2010 to develop the facilities and infrastructure, as well as carry out maintenance works for the campus.
As it stands, YBKU has a remaining concession period of another 13 years ending 2034, totalling approximately RM791 million.
Widad managing director Datuk Dr Mohd Rizal Mohd Jaafar said the acquisition had expanded its integrated facilities management service offerings into the education industry and strengthened its order book to RM1.5 billion from RM718.8 million.
“Widad Group has been in the construction and integrated facilities management businesses for more than 20 years. The acquisition 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.
"The contribution of the UITM campus project in Jasin, Melaka will present Widad Group with a stream of future recurring cash flow streams from the remaining tenure of the concession,” he added.
Widad signed two conditional share sale agreements (SSAs) to acquire SHSB for RM127.02 million on Feb 19.
The group entered into the first SSA with the shareholders of SHSB, Prihatin Ehsan Holdings Sdn Bhd and Training Camp Aabata Sdn Bhd, for the acquisition of an aggregate 90% equity interest or 4.5 million ordinary shares in SHSB for RM114.62 million via cash and issuance of new ordinary shares in Widad.
The second SSA, with Just Wisdom Sdn Bhd, was for the remaining 10% equity interest or 500,000 ordinary shares for RM12.4 million in cash.
Shares in Widad were 3.15% or two sen lower at 61.5 sen, valuing it at RM1.69 billion as of the noon market close today.