KUALA LUMPUR, Nov 7 -- Shares of Widad Group Bhd have risen steadily following its proposal to take over PLUS Malaysia Bhd.
SJ Securities in its note today said if the proposal is executed, Widad is expected to benefit from the transaction in the form of asset management.
Besides SJ, RAM ratings also reaffirmed Widad Capital's AA2 ratings and revised the outlook to positive in view of the group's better than expected finance service coverage ratio.
Widad or formerly known as Ideal Jacobs Corporation Bhd, is a Bumiputera contractor registered with various government agencies, and holds a CIDB Grade G7 licence.
Based on its second quarter financial result ended June 30, 2019, the company recorded a net profit of RM11.27 million with cumulative revenue of RM77.82 million.
On Oct 30, the company upped its offer for PLUS with a new proposal to acquire a 100 per cent equity interest in it for RM5.3 billion.
Including the compensation waiver of RM3.04 billion and debt assumption of RM30 billion, the total enterprise value of the offer comes to RM38.34 billion, which is the highest bid from the private sector so far.
Since the announcement, Widad’s share price has risen from 30 sen to 43.5 sen as of 3.30 pm today with 6,388,200 shares changing hands.