Bintai Kinden receives shareholders approval to acquire Johnson Medical

KUALA LUMPUR: Bintai Kinden Corp Bhd has received the nod from shareholders at its extraordinary general meeting to acquire 100% equity interest in Johnson Medical International Sdn Bhd for RM50mil.

It said in a statement the acquisition will be satisfied via a combination of RM26mil cash and the issuance of about 58.5 million new ordinary shares in Bintai Kinden at 41 sen each.

The corporate exercise would allow Bintai Group to expand its existing customer base and widen its mechanical and electrical (M&E) engineering service offerings to include the healthcare services industry in Malaysia.

Bintai Kinden deputy CEO Azri Azerai said the acquisition is a horizontal acquisition by the company, which presents an opportunity for it to expand its core construction-related businesses via acquisition.

“Johnson Medical has established a proven track record and has been successful in executing and completing various construction projects for various medical facilities/centres in Malaysia.

“The acquisition will enable Bintai Group to leverage on the expertise, know-how, skills and resources of Johnson Medical to expand its construction business segment, tender larger construction projects in the medical and healthcare industry as well as enhance the group’s presence in the construction industry," he said.

He added that the acquisition will come with guaranteed net profit of RM9.10mil over two years which translates into average net profit of RM4.55mil for FY2022 and FY2023 respectively.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business

CPO futures likely to undergo technical correction next week
Econpile issues termination notice to Gabungan Strategik
Intel's US$20bil Ohio factory could become world's largest chip plant
Shrunken US oil inventories point to chronic under-supply
Royal Dutch no more - Shell officially changes name
Oil price slides, but climbs for 5th week on supply concerns
GLOBAL MARKETS-Bond yields tumble as Netflix fuels stock market sell-off
Rising interest rate fallout unlikely
Policy normalisation can lend support to ringgit
Short Position - Green bond, O&G funding, Going the EV way

Others Also Read