Citaglobal obtains shareholders’ nod to buy CESSB for RM140mil

Citaglobal group executive chairman and president Tan Sri Mohamad Norza Zakaria (middle) together with the senior management and board of directors and advisor during the post-EGM press conference today.

KUALA LUMPUR: Citaglobal Bhd’s shareholders have approved its proposed acquisition of the entire equity interest in Citaglobal Engineering Services Sdn Bhd (CESSB) for RM140mil.

In a statement, Citaglobal said the proposed acquisition would be satisfied via the issuance of 736.84 million new shares at an issue price of 19 sen each.

The proposed acquisition is expected to be completed in the fourth quarter of this year.

Its shareholders also approved the proposed consolidation of every five existing Citaglobal shares into one Citaglobal share on an entitlement date that will be determined at a later period.

Citaglobal said the proposed acquisition comes with a net profit guarantee of RM60mil over three financial years, beginning from Citaglobal’s financial year ending Dec 31, 2022 to 2024.

With the completion of this proposed acquisition, Citaglobal’s orderbook will effectively increase from RM754.5mil (being Citaglobal’s order book as of June 30 of RM381mil and the RM373.5mil EPC contract for the design, construction and equipping of Phase 1 of Perlis Inland Port secured on Aug 30) to RM984.7mil.

Group executive chairman and president Tan Sri Mohamad Norza Zakaria will see his stake in the company increase from 16.51% to 47.03% upon the completion of this exercise.

“We are very grateful for the support and trust given to us by our shareholders. In the Malay language, Citaglobal means ‘Global Ambition’. Like the name implies, we have global ambitions for the organisation.

“We have a mission to mould Citaglobal into a heavyweight that is here to stay, particularly in the telecommunications and renewable energy sector. We have been putting in the work, and results are beginning to show,” he said.

Separately, Citaglobal has executed a collaboration agreement with Genetec Technology Bhd to develop battery energy storage management systems to store and manage excess power during the generation of renewable energy.

Both parties will enter into a definitive agreement within one month, with an automatic extension of one month or such extended period no later than six months from the date of the collaboration agreement.

This definitive agreement will see a special purpose vehicle to be formed based on a 50:50 shareholding between both parties.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Business News

US economy grew slightly, inflation and rates cloud outlook
Wall St preps for year-end stock rally
Loan demand to buoy Malaysia banking sector
S P Setia appoints Annuar Marzuki Abdul Aziz as CFO
CelcomDigi formalises Idham Nawawi, Albern Murty as CEO, deputy CEO
EP Manufacturing appoints Lim Sim Yee as acting CEO
External factors continue to lift ringgit higher
Malaysia's digital assets market regulated to protect investors: SC
Mohamed Ridza Mohamed Abdulla retires from BIMB Group
China's EVE Energy to build US$422.3mil cylindrical battery plant in Malaysia

Others Also Read