Kuala Lumpur: Widad Group Bhd’s wholly-owned subsidiary, Widad Development (Nilai) Sdn Bhd, has entered into 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, covering approximately 4.21 hectares, are situated in Bandar Nilai Utama, Negeri Sembilan.

According to BERNAMA News Agency, the acquisition will be entirely satisfied through the issuance of 993.65 million new ordinary shares in Widad at an issue price of 31.5 sen per share. The group plans to change the land use category from industrial to commercial for developing commercial properties. Additionally, Widad has proposed diversifying its business to include property development as a new revenue stream, which is expected to positively contribute to the group’s financial performance.

The group stated that this move aligns with its vision of expanding its business vertically to encompass construction, property development, and integrated facilities management as part of the overall property market ecosystem. Alongside the acquisition, Widad has proposed a share consolidation to improve its capital structure. The share consolidation is expected to increase the theoretical market price of each share tenfold while reducing the total number of shares in issue proportionately.

At the market close today, Widad shares remained unchanged at three sen, with 3,900 shares traded.