Vizione shareholders approve Wira Syukur deal
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.