WZ Satu will get enterprise injection, new shareholders

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PETALING JAYA: Attention-grabbing developments are going down in civil engineering group WZ Satu Bhd.

Chairman Tan Sri Mohamad Norza Zakaria (pic) shall be injecting his non-public car into the development participant for RM140mil, which shall be settled through the issuance of recent shares and lift his stake to 60%.

This injection, which comes with a revenue assure, will assist WZ Satu return to profitability within the monetary 12 months ending Dec 31, 2022, in line with the group.

The corporate may also see the emergence of plenty of new shareholders, together with the key shareholder of Genetec Technology Bhd Aaron Chen Kai Voon.

This shall be achieved through a non-public placement train at 17 sen per share.

Chen shall be subscribing 75.2 million shares value RM12.79mil.

Beneath the minimal state of affairs, Chen will personal a 8.33% stake, whereas underneath the utmost state of affairs, he’ll personal 5.29% of WZ Satu.

The opposite subscribers particularly Datuk Jeeventhiran Ramanaidu, Francis Sa Chee Peng and Raja Datuk Mufik Affandi Raja Khalid will subscribe about 75.2 million shares collectively, just like the worth injected by Chen.

The cumulative RM25.57mil proceeds to be raised from the non-public placement shall be used for extra funding in present enterprise and dealing capital.

The buying and selling of the WZ inventory was suspended yesterday, pending the discharge of a cloth announcement.

Previous to the suspension, the counter closed at 22 sen per share.

A supply near WZ Satu advised StarBiz that Chen would play an lively function within the firm.

“The 2 developments will assist enhance the corporate’s order guide and strengthen its enterprise operations,” the supply mentioned.

In a press release yesterday, WZ Satu proposed to purchase 100% fairness curiosity in Citaglobal Engineering Providers Sdn Bhd (CESSB) from Norza’s Citaglobal Sdn Bhd.

WZ Satu entered right into a binding settlement with Citaglobal to “completely discover and negotiate additional” the proposed acquisition.

CESSB has an order guide of about RM500mil and is concerned within the enterprise of development, mechanical providers and telecommunication tower developments, amongst others.

“The proposed acquisition comes with an mixture web revenue assure of RM60mil for 3 full monetary years ending 2022, 2023 and 2024,” WZ Satu mentioned.

In response to Norza, who’s the president of Olympic Council of Malaysia, WZ Satu shall be his flagship firm post-injection of CESSB.

“For a begin, we need to rework WZ Satu. This shall be attainable with the revenue assure that CESSB is offering.

“We’re already figuring out and trying to bid for extra initiatives as we’re prepared,” added Norza.

Norza’s Citaglobal shall be paid RM140mil through the issuance of 421,052,632 new peculiar shares in WZ Satu at a problem worth of 19 sen per share, along with the issuance of 315,789,474 new redeemable convertible desire shares at 19 sen per share.

Norza has a 23% stake in WZ Satu. This proposed acquisition is topic to sure circumstances precedent being obtained, particularly the approval of shareholders at an EGM, and the approval of Bursa Malaysia for the issuance and citation of the brand new WZ Satu shares.

In an announcement on Nov 16, WZ Satu advised the inventory trade that it had fastened the problem worth for its proposed placement at 17 sen.



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