KUALA LUMPUR: Widad Group Bhd
’s wholly-owned subsidiary, Widad Development (Nilai) Sdn Bhd, has signed a conditional sale and purchase agreement with Guper Bonded Warehouse Sdn Bhd to acquire four adjacent parcels of freehold industrial land valued at RM31.30 million.
The parcels of land measure approximately 4.21 hectares and are located in Bandar Nilai Utama, Negeri Sembilan.
In a filing with Bursa Malaysia today, it said the proposed acquisition will be satisfied entirely via the issuance of 993.65 million new ordinary shares in Widad at an issue price of 31.5 sen per share.
The group intends to convert the category of land use from industrial to commercial for the development of commercial properties.
In addition, the group also proposed a diversification of its business to embark on the property development business following the proposed acquisition.
"With the additional revenue stream from the property development business, the proposed diversification is expected to contribute positively to the group’s financial performance moving forward.
"This aligns with the group’s vision of expanding its business vertically to encompass construction, property development and integrated facilities management, all of which are inter-related in nature and form part of the overall property market ecosystem," it added.
Meanwhile, Widad has also proposed share consolidation as part of the group’s proactive plan to improve its capital structure.
"Upon completion of the proposed share consolidation, the theoretical market price of each share will increase tenfold, while the total number of shares in issue will be reduced proportionately," it said.
At the close today, Widad shares were flat at three sen with 3,900 shares traded. - Bernama
