KUALA LUMPUR: Construction company Vizione Holdings Bhd
will acquire an entire equity stake in Wira Syukur (M) Sdn Bhd (WSSB) for RM280mil. The company today obtained the green light at its EGM today to pursue with the proposed acquisition.
The acquisition will be satisfied via the combination of cash and issuance of new ordinary shares of Vizione to be issued at an issue price of RM0.11 per share.
According to the circular on Bursa Malaysia, WSSB has unconditionally guaranteed an aggregate profit after tax contribution of RM82mil for the financial years ending December 31, 2017 and December 31, 2018.
At a media briefing after the EGM, Vizione Holdings managing director Datuk Ng Aun Hooi in a statement said: “We are thrilled to receive the approvals from our shareholders, which in turn serves as a testament to the company’s business direction.
“The acquisition of WSSB shall further enhance the construction earnings of Vizione, which have turned around since diversifying in 2015. A foremost priority on our corporate agenda is to enhance shareholders’ value and we are always looking for ways to do this.”
“Post-acquisition, Vizione will continue to tender for more construction projects. Besides that, we will also embark and explore some smaller scale property development project by working closely or joint venture with the landowners.
“It is our intention to have diversified source of income stream for the company. Things are expected to get more exciting in Vizione and I am personally eager to see what this company will deliver in the coming years.”
Ng said the acquisition will not only further enhance the construction earnings of Vizione, but also mitigating the potential conflict of interest between Vizione and his interest in WSSB.
“As a subsidiary of a listed corporation upon completion of the corporate exercise, it will provide access to the capital market for cost effective capital fund raising for WSSB,” he added.
Incorporated in 1996, WSSB is principally engaged in building, civil engineering as well as construction works.
WSSB is a Grade G7 contractor with CIDB and registered with the Masters Builders. WSSB has successfully completed numerous construction projects with a total contract value exceeding RM800mil.