Vizione share­hold­ers ap­prove Wira Syukur deal

New Straits Times - - Business / News -

KUALA LUMPUR: Vizione Holdings Bhd has re­ceived share­hold­ers’ ap­proval for its pro­posed ac­qui­si­tion of Wira Syukur (M) Sdn Bhd for RM280 mil­lion.

The pro­posed ac­qui­si­tion would en­hance Vizione’s earn­ings from the con­struc­tion seg­ment, said its manag­ing direc­tor Datuk Ng Aun Hooi in a state­ment pur­suant to its share­hold­ers’ meet­ing, here, yes­ter­day.

“We are thrilled to re­ceive the share­hold­ers’ ap­provals. This serves as a tes­ta­ment to the com­pany’s busi­ness di­rec­tion.

“The ac­qui­si­tion will fur­ther en­hance the con­struc­tion earn­ings of Vizione, which have turned around since di­ver­si­fy­ing in 2015. A fore­most pri­or­ity on our cor­po­rate agenda is to en­hance share­hold­ers’ value and we are al­ways look­ing for ways to do this.”

The pro­posed deal was first an­nounced in late March.

“Post-ac­qui­si­tion, Vizione will con­tinue to ten­der for more con­struc­tion projects. We will also em­bark on and ex­plore small­er­scale prop­erty devel­op­ment projects by work­ing closely or in a joint ven­ture with the landown­ers.

“It is our in­ten­tion to have a di­ver­si­fied source of in­come stream for the com­pany. Things are ex­pected to get more ex­cit­ing for Vizione,” he added.

The ac­qui­si­tion will be sat­is­fied via a com­bi­na­tion of cash and is­suance of new Vizione shares at 11 sen each.

Ac­cord­ing to its cir­cu­lar on Bursa Malaysia, Wira Syukur ven­dors had un­con­di­tion­ally guar­an­teed an ag­gre­gate net profit con­tri­bu­tion of RM82 mil­lion for this year and next.

Ng said the deal would mit­i­gate the po­ten­tial con­flict of in­ter­est be­tween Vizione and his in­ter­est in Wira Syukur.

“As a subsidiary of a listed cor­po­ra­tion upon com­ple­tion of the cor­po­rate ex­er­cise, it will pro­vide ac­cess to the cap­i­tal mar­ket for cost-ef­fec­tive cap­i­tal fund rais­ing for Wira Syukur,” he added.

In­cor­po­rated in 1996, Wira syukur is prin­ci­pally en­gaged in build­ing, civil en­gi­neer­ing as well as con­struc­tion works.

It is a Grade G7 con­trac­tor with the Con­struc­tion In­dus­try Devel­op­ment Board. The com­pany has com­pleted con­struc­tion projects with a to­tal con­tract value ex­ceed­ing RM800 mil­lion.

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