KJTS Group Proposes To Acquire Malakoff Utilities For RM65.5 Mln

KUALA LUMPUR, Feb 3 (Bernama) -- KJTS Group Bhd has proposed to acquire Malakoff Utilities Sdn Bhd (MUSB), a subsidiary of Malakoff Corporation Bhd, for RM65.5 million in cash.

In a Bursa Malaysia filing today, KJTS said the acquisition will be made through its wholly-owned subsidiary KJ Technical Services Sdn Bhd, and MUSB will be made an indirect wholly-owned subsidiary of KJTS upon completion.

It said the company has proposed to partially finance the acquisition by reallocating RM44.42 million of its initial public offering (IPO) proceeds.

“Meanwhile, the remaining RM21.08 million will be financed through internally generated funds and/or bank borrowings,” it said, adding that the exact proportion of funding will be decided at a later date after taking into consideration the company and its subsidiaries.

KJTS said the proposed acquisition is expected to create synergistic benefits to complement its building support services business, which includes cooling energy, cleaning, and facilities management.

It added that the acquisition would grant the group access to MUSB’s experienced technical management team, thereby bolstering its management capabilities to scale up the expansion of its core business in the industry.

“The expanded team, following the acquisition of MUSB, will enable KJTS to efficiently oversee and develop its growing portfolio, thereby ensuring sustainable earnings growth for the group,” it said.

KJTS added that the acquisition is expected to be completed by the second quarter of 2025.

-- BERNAMA