KUALA LUMPUR: Civil engineering and construction specialist WZ Satu Bhd (WZ Satu) today proposed to change its name to Citaglobal Bhd in an aim to transform into a conglomerate that is involved in facilities management, telecommunications, energy, infrastructure and technology sectors.
Executive chairman and president Tan Sri Mohamad Norza Zakaria said the name change reflects his determination to carry over the experience gained in growing Citaglobal Sdn Bhd to bring WZ Satu to greater heights.
"I look forward to turning WZ Satu into a serious player in the industries it is currently involved in as well as new ones that can provide transformational growth," he said.
In a filing with Bursa Malaysia today, WZ Satu said that an extraordinary general meeting (EGM) to obtain the shareholders' approval for the name change will be held at a date to be announced later.
As of 31 December 2021, WZ Satu's order book stands at RM578 million and this will provide earnings visibility until 2023.
"Over the next few years, one of the key drivers for WZ Satu will be Malaysia's 5G network rollout and once we complete the acquisition of Citaglobal Engineering Services Sdn Bhd (CES).
"The company expects to be a beneficiary of the development of 5G telecommunication towers across the country," he said further.
CES has more than 15 years' experience in engineering consultancy and construction-related services, and four years' experience in telecommunication tower development.
There are currently 20 towers generating recurring income under CES and the company is in midst of bidding for more.
"Although WZ Satu does not possess the required licence, such network facilities provider licence for this, CES does, and the plan is to inject a certain number of tower projects into the former," he explains.
To recap, WZ Satu had on 17 November 2021 proposed to acquire the entire equity interest in CES from Citaglobal Sdn Bhd for RM140 million.
The acquisition comes with an aggregate net profit guarantee of RM60 million for three full financial years ending 2022, 2023 and 2024.
CES is a Bumiputra private limited company and is principally engaged in engineering consultancy services and construction-related services.
The company recently achieved a turnaround in its fourth quarter (Q4) ended 31 December 2021 (FY21) with a net profit of RM3.6 million against a revenue of RM57 million.
With the solid performance, the company returned to profitability on a full-year basis - the first time since 2018.