KUALA LUMPUR: Widad Group Bhd (WGB) has completed the acquisition of Serendah Heights Sdn Bhd (SHSB), expanding the company's integrated facilities management (IFM) service offerings into the education industry.
This exercise has also strengthened WGB's order book from RM718.8 million to approximately RM1.5 billion.
"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.
"Further, the contribution of performance from the Universiti Teknologi MARA (UITM) campus in Jasin, Melaka project will present WGB with a stream of future recurring cash flow streams from the remaining tenure of the concession," managing director Datuk Dr Mohd Rizal Mohd Jaafar said in a statement today.
To recap, WGB had on February 19, 2020 signed two conditional shares sales agreement (SSA) to fully acquire SHSB for RM127.02 million.
The company 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 90 per cent equity interest or 4.5 million 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 is also the concession holder for the development, construction and maintenance of UITM campus in Jasin, Melaka.
It holds the concession via its wholly-owned subsidiary YBK Usahama Sdn Bhd (YBKU), which had 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.
Currently, YBKU has a remaining concession period of another 13 years ending 2034 totalling approximately RM791.0 million.