Widad Group to takeover concession worth RM861.6 million by acquiring Serendah Heights

KUCHING: Widad Group Bhd ( Widad Group) recently announced that the company has entered into a Heads of Agreement (HOA) to acquire 90 per cent equity interest in Serendah Heights Sdn Bhd (SHSB) for a purchase consideration of RM95.89 million.

In a filing with Bursa Malaysia, Widad Group revealed that the company entered into the HOA with the shareholders of SHSB, namely Prihatin Ehsan Holdings Sdn Bhd and Training Camp Aabata Sdn Bhd for the proposed acquisition of an aggregate of 90 per cent equity interest or 4.5 million ordinary shares in SHSB.

The proposed acquisition is expected to be completed in the first quarter of 2020.

The acquisition will be satisfied via cash of RM86.3 million, being 90 per cent of the purchase consideration and issuance of new ordinary shares in Widad Group with value of RM9.589 million being 10 per cent of the Purchase Consideration.

SHSB holds and owns 100 per cent shares in YBK Usahama Sdn Bhd ( YBKU), which had entered into a concession agreement with

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the Government of Malaysia and Universiti Teknologi MARA (UITM) on May 4, 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 14 years ending 2034, totalling RM861.6 million.

“This proposition is in line with Widad Group’s principal activities which are construction and integrated facilities management. Acquiring SHSB and in turn YBKU which owns the concession for the UiTM project represents a strategic move for us to strengthen our remaining order book from approximately RM910 million currently to RM1.8 billion after the proposed acquisition,” Widad Group Bhd said.

“Widad Group 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.”