KUALA LUMPUR, Nov 27 (Bernama) -- Integrated facilities management (IFM) service provider Widad Group Bhd plans to take over Innovatif Mewah Sdn Bhd, which holds a concession to undertake maintenance works for Universiti Teknologi Malaysia's (UiTM) Seremban 3 campus, for RM122 million.
The company inked a heads of agreement (HOA) today to acquire a 100 per cent stake in Innovatif Mewah from Menang Corporation Bhd and Tentu Selesa Sdn Bhd.
Innovatif Mewah has a remaining concession period of 14 years ending January 2034 worth RM838 million, Widad Group said in a filing with Bursa Malaysia.
It added that the proposed acquisition was expected to be completed within eight months.
In a press statement, Widad Group executive chairman Datuk Feizal Mustapha said the corporate exercise was the second acquisition of such concessionaires after the acquisition of Serendah Heights Sdn Bhd in October.
“It represents a strategic opportunity for us to further strengthen our IFM segment which is currently the biggest revenue contributor for the company at about 50 per cent,” he said.
To recap, Widad had announced in October on its purchase of 90 per cent equity interest in Serendah Heights Sdn Bhd for RM86.3 million.
Serendah Heights’ wholly-owned unit YBK Usahasama Sdn Bhd has a concession to develop the facilities and infrastructure and to carry out maintenance works for the UiTM campus in Jasin, Melaka, for another 14 years ending 2034, totalling RM861.6 million.
“On completion of the two acquisitions, Widad Group’s total order book will be about RM3 billion,” it added.