Hextar Technologies to emerge as Widad’s largest shareholder following Nilai land injection

• Under an agreeement signed on Thursday, Widad will acquire the 10.4-acre industrial land, located within the Nilai Inland Port, from Hextar Technologies’ wholly owned subsidiary, Guper Bonded Warehouse Sdn Bhd (GBWSB), for RM31.3 million.

KUALA LUMPUR (April 17): Hextar Technologies Solutions Bhd (KL:HEXTECH) is set to emerge as the largest shareholder in Widad Group Bhd (KL:WIDAD), with a 23.03% stake, following a land injection deal in Negeri Sembilan.

Under an agreeement signed on Thursday, Widad will acquire the 10.4-acre industrial land, located within the Nilai Inland Port, from Hextar Technologies’ wholly owned subsidiary, Guper Bonded Warehouse Sdn Bhd (GBWSB), for RM31.3 million.

In a bourse filing, Widad said it will satisfy the purchase consideration through the issuance of 993.65 million new shares at 3.15 sen per share to GBWSB. The issue price represents a 14.13% premium to Widad’s five-day volume-weighted average price of 2.76 sen per share, prior to the signing of the agreement.

Following the share issuance, Widad intends to undertake a share consolidation under which every 10 existing shares will be consolidated into one. As of April 7, Widad had 3.12 billion shares in issue.

Currently, Widad’s largest shareholder is its founder Tan Sri Muhammad Ikmal Opat Abdullah, who holds a 13.66% stake (direct and indirect). Following the issuance of new shares, his stake will be diluted to 10.51%.

Separetely, Hextar Technologies said 89.46% of the proceeeds of the land sale will go towards the group's investment in its technologies business, while 7.89% will be allocated for working capital and 2.65% for estimated disposal expenses.

Hextar Technologies expects to record a net pro forma gain of RM25.97 million from the deal.

The group is controlled by Datuk Eddie Ong Choo Meng, who holds a 59.36% stake (direct and indirect).

Widad plans to undertake a commercial property development on the land, with an estimated gross development value of RM135.29 million.

This marks a diversification for the construction and integrated facilities management (IFM) group into property development.

The group targets the land conversion to take place in the third quarter of 2026, with development work to begin in the second quarter of 2027.

Commenting on the group’s prospects, Widad said the rising number of commercial properties and educational institutions in Malaysia presents increased demand for IFM services.

The group currently provides end-to-end services — from planning, design, financing, and construction to full-scope IFM solutions across various asset lifecycles.

“Over the past three financial years, Widad has successfully expanded its business through the acquisition of two concession businesses and by securing new construction and IFM projects,” it said.

“As part of its new business segment, the company is exploring potential partnerships with reliable and reputable firms to establish a presence in the property sector and enhance the number of high-value projects within its new business ventures,” Widad added.

Shares of Hextar Technologies closed unchanged at RM1.09, valuing the group at RM2.24 billion. Widad also closed unchanged at three sen, giving the group a market capitalisation of RM93.6 million.

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