Widad acquires UiTM Jasin concession for RM127m

KUALA LUMPUR (Feb 19): Widad Group Bhd is taking over the entire 100% stake in Serendah Heights Sdn Bhd (SHSB), the ultimate owner of a concession to develop and maintain the Universiti Teknologi Mara (UiTM) campus in Jasin, Melaka, for RM127.02 million.

This follows an earlier Heads of Agreement with SHSB’s shareholders, Prihatin Ehsan Holdings Sdn Bhd and Training Camp Aabata Sdn Bhd, for the acquisition of 90% of SHSB last October.

SHSB holds the concession for UiTM Jasin via its wholly-owned unit YBK Usahasama Sdn Bhd. There are 14 years remaining to the concession that will end in 2034, valued at RM861.58 million.

Over the past three financial years up until Dec 31 2019 (FY19), the revenue of SHSB was between RM59.83 million and RM60.38 million while the profit was between RM12.38 million and RM16.81 million.

Under a share sale agreement inked between Widad Group and SHSB’s shareholders today, the parties arrived at a price of RM114.62 million for the 90% stake — higher than the initial consideration of RM95.89 million underlined in the Heads of Agreement.

Widad Group also inked another share sale agreement with Just Wisdom Sdn Bhd to acquire the remaining 10% in SHSB for RM12.4 million.

The group said it will satisfy the transactions via RM115.56 million cash. The remaining RM11.46 million will be paid via 24.13 million new shares in Widad at 47.5 sen per share.

Widad Group shares closed unchanged at 53 sen, giving it a market capitalisation of RM1.3 billion.

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