Thursday 28 Mar 2024
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KUALA LUMPUR (April 14):  Widad Group Bhd has proposed the acquisition of a firm for RM35 million cash, which will expand the group's integrated facilities management service offerings into the defence industry.

In a bourse filing, Widad said its wholly-owned subsidiary Widad Capital Sdn Bhd has signed a heads of agreement to acquire Palm Shore Holdings Sdn Bhd (PSHSB) from Nawawi Tamby and Mohd Ghauth Mohd Yusoff, who hold 70% and 30% stakes in the firm.

“It represents a strategic opportunity for Widad Group to strengthen its remaining order book from approximately RM1.2 billion currently to RM1.5 billion post proposed acquisition, and diversify its service offerings into the defence industry,” the group  added.

Widad said PSHSB had entered into a concession agreement with the government in November 2015 to develop an integrated training centre for the Royal Malaysian Navy in Sungai Lunchoo, Johor, and undertake maintenance works for the centre.

Currently, PSHSB has a remaining concession period of 18 years and 10 months ending in February 2040, totalling RM291 million.

Widad said the source of funding for the purchase of PSHSB will be a combination of the internally-generated funds and bank borrowings.

Widad's share price closed up 4.5 sen or 9.18% at 53.5 sen today, giving the group a market capitalisation of RM1.46 billion. The counter was the day's fourth most actively-traded on Bursa Malaysia, with 159.14 million shares exchanging hands.

Edited ByS Kanagaraju
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