KUALA LUMPUR (March 19): Widad Group Bhd has completed the acquisition of Serendah Heights Sdn Bhd (SHSB), raising its book order to RM 1.5 billion.
In a statement today, the company for construction and integrated facilities management said that SHSB is the holder of a concession for the development, construction and maintenance of the Universiti Teknologi MARA (Ui TM) campus in Yasin, Melaka.
SHSB holds the concession agreement through its wholly owned subsidiary YBK Usahama Sdn Bhd (YBKU), which entered into a concession agreement with the government and UITM in May 2010 to develop facilities and infrastructure, as well as to carry out campus maintenance work. .
As it stands, YBKU has a remaining concession period of 13 years, ending in 2034, with a total value of approximately RM 791 million.
Widad Managing Director Datuk Dr Mohd Rizal Mohd afaafar said the acquisition had expanded the offer of integrated capacity management services in the education industry and strengthened the order book to RM 1,500 billion from RM 718.8 million.
“Vidad Group has been working in construction and business with integrated facility management for more than 20 years. The acquisition is part of our company expansion strategy to strengthen the group’s revenue stream and long-term cash flow positions, as well as more solid long-term assets.
“Melaka will present the contribution of the UITM project campus in Yasin to Vidad Group with an inflow of future refund periods from the remaining concession mandate,” he added.
Vidad signed two conditional share sale (SAA) contracts to buy SHSB for RM 127.02 million on 19 February.
The group entered the first SAA with SHSB shareholders Prihatin Ehsan Holdings Sdn Bhd and Aabata Sdn Bhd Training Camp to acquire a 90% stake or 4.5 million ordinary shares in SHSB for RM 114.62 million in cash and issue new shares. ordinary shares in Vidad.
The second SSA, with Just Wisdom Sdn Bhd, was for the remaining 10% capital or 500,000 ordinary shares for RM 12.4 million in cash.
Shares in Widad were down 3.15%, or two cents, at 61.5 cents, valued at RM 1.69 billion, closing at noon today.