Widad Group buys another IFM concessionaire worth RM838m to bring its total order book to RM3b

KUALA LUMPUR: Widad Group Bhd, formerly known as Ideal Jacob Bhd, is buying a 100 per cent stake in Innovatif Mewah Sdn Bhd for RM122 million in cash.

This will give Widad an additional integrated facilities management (IFM) concessionaire worth RM838 million, bringing its total order book to about RM3 billion.

Widad, in a filing with Bursa Malaysia today, said it had entered into a head of agreement with Innovatif Mewah shareholders.

They are Menang Development (M) Sdn Bhd, Menang Industries (M) Sdn Bhd and Tentu Selesa Sdn Bhd (TSSB).

Menang Development and Menang Industries are wholly-owned subsidiaries of listed Menang Corp Bhd.

“The proposed acquisition is expected to be completed within eight months from the execution of the HoA,” Widad said.

Innovatif Mewah had entered into a concession agreement with the government and Universiti Teknoloji MARA (UiTM) on May 4 2010 to develop facilities, infrastructure and carry out maintenance works for the UiTM Campus Seremban 3 in Negri Sembilan.

It has a remaining concession period of 14 years ending January 2034, totalling RM838 million.

Widad group executive chairman Datuk Feizal Mustapha said: “The cash consideration for the purchase shall be raised from a combination of internally generated funds and bank borrowings.

“This corporate exercise is the second acquisition of such concessionaires after the acquisition of Serendah Heights Sdn Bhd in October.”

He added that the acquisition represented a strategic opportunity to strengthen Widad’s IFM segment, which is currently the biggest revenue contributor at about 50 per cent.

Widad had announced in October its acquisition of a 90 per cent stake in Serendah Heights for RM86.3 million.

Serendah Heights owns 100 per cent of YBK Usahasama Sdn Bhd which has a concession to develop and carry out maintenance works for ÜiTM Campus in Jasin, Melaka.

YBK Usahasama has remaining concession period of 14 years ending 2034, totalling RM861.6 million.

By NST Business - November 27, 2019 @ 8:25pm