KUALA LUMPUR: Bintai Kinden Corp Bhd has received the nod from shareholders at its extraordinary general meeting to acquire 100% equity interest in Johnson Medical International Sdn Bhd for RM50mil.
It said in a statement the acquisition will be satisfied via a combination of RM26mil cash and the issuance of about 58.5 million new ordinary shares in Bintai Kinden at 41 sen each.
The corporate exercise would allow Bintai Group to expand its existing customer base and widen its mechanical and electrical (M&E) engineering service offerings to include the healthcare services industry in Malaysia.
Bintai Kinden deputy CEO Azri Azerai said the acquisition is a horizontal acquisition by the company, which presents an opportunity for it to expand its core construction-related businesses via acquisition.
“Johnson Medical has established a proven track record and has been successful in executing and completing various construction projects for various medical facilities/centres in Malaysia.
“The acquisition will enable Bintai Group to leverage on the expertise, know-how, skills and resources of Johnson Medical to expand its construction business segment, tender larger construction projects in the medical and healthcare industry as well as enhance the group’s presence in the construction industry,” she said.
He added that the acquisition will come with guaranteed net profit of RM9.10mil over two years which translates into average net profit of RM4.55mil for FY2022 and FY2023 respectively.