KJTS Group Bhd has proposed to acquire a 70.67% stake in engineering solutions provider iHandal Holdings Sdn Bhd for RM10.1 million in cash, as part of its strategy to strengthen its presence in the energy efficiency sector.
In a filing with Bursa Malaysia, KJTS said its wholly owned subsidiary, KJ Technical Services Sdn Bhd, has entered into a share sale and purchase agreement with Corellia Holdings I Sdn Bhd to acquire 16.7 million redeemable and convertible preference shares B in iHandal. The shares will be converted into ordinary shares upon completion of the transaction.
Following the acquisition, iHandal will become a 70.67%-owned subsidiary of KJ Technical Services and an indirect subsidiary of KJTS.
Corellia Holdings I is wholly owned by AHAM Asset Management Bhd, with Datuk Wira Johan Ariffin Rozali Wathooth serving as its director.
Established in 2009, iHandal specialises in sustainable engineering solutions focused on energy efficiency. Its proprietary Heatfuse™ technology captures and repurposes waste heat to improve energy utilisation. The company serves commercial and industrial clients including hotels, hospitals and manufacturing facilities, and operates across Southeast Asia, South Asia, Oceania and North America.
For the financial year ended June 30, 2024, iHandal reported a net loss of RM1.23 million, improving from a RM3.19 million loss recorded in FY2023. The company had previously posted a net profit of RM426,000 in FY2022.
KJTS said the acquisition will complement its existing cooling energy management and building support services by expanding its offerings into broader energy optimisation solutions.
The group noted that the combination of both businesses could create cross-selling opportunities and enable KJTS to pursue larger and more complex projects, supported by enhanced engineering and implementation capabilities.
Despite iHandal’s recent losses, KJTS said these were mainly attributable to financing costs and project timing, adding that the company’s core operations continue to deliver positive gross margins.
The acquisition will also provide KJTS access to iHandal’s technical expertise, intellectual property and engineering team, strengthening the group’s capabilities and supporting its regional expansion plans.
The RM10.1 million purchase will be funded entirely through internally generated funds and will not impact KJTS’ issued share capital or major shareholdings. Subject to the fulfilment of conditions precedent, the transaction is expected to be completed by the second quarter of 2026.
Shares of KJTS closed 1.5 sen higher, or 2%, at 76 sen on Thursday, giving the company a market capitalisation of RM524.79 million. The stock has declined 27.6% over the past year.
