KUALA LUMPUR: KJTS Group Bhd
has proposed to acquire Malakoff Utilities Sdn Bhd (MUSB), a wholly-owned subsidiary of Malakoff Corp Bhd for RM65.5mil cash.
The energy-efficient cooling solutions and building support services provider said the proposed acquisition aligns with KJTS’s strategy to expand its cooling energy management business, strengthen its market presence, and enhance operational efficiencies.
In a statement, KJTS said the acquisition, executed through KJ Technical Services Sdn Bhd, a wholly-owned subsidiary of KJTS, will make MUSB an indirect wholly-owned subsidiary of KJTS upon completion.
MUSB owns and operates a large-scale cooling system that supplies chilled water for air-conditioning to 10 major buildings within Kuala Lumpur Sentral.
The acquisition provides KJTS with an immediate opportunity to scale up its cooling operations, leveraging its expertise in energy-efficient cooling solutions to enhance MUSB’s performance, optimise cost structures, and drive long-term growth.
KJTS is proposing to adjust its IPO proceeds for the acquisition. About RM44.42mil will be used to partly finance the deal, showing the company’s focus on growth while maintaining financial discipline.
The rest of the purchase will be funded through internal funds and/or bank loans. With its strong financial position, KJTS does not foresee any need for equity fundraising in the near future.
“The acquisition of MUSB marks a significant milestone in KJTS’s growth, strengthening our position in the cooling energy management sector. By integrating MUSB’s large-scale cooling operations with our expertise, we will drive greater efficiency, lower costs, and enhance energy performance at scale,” KJTS chairperson Azura Azman said.
“This transaction will significantly increase KJTS’s total revenue and broaden our service capabilities. We are confident in unlocking greater efficiencies and long-term value, reinforcing our commitment to sustainable and high-performance cooling solutions.”
