KUALA LUMPUR (March 5): KJTS Group Bhd (KL:KJTS) has proposed to acquire a 70.67% equity interest in iHandal Holdings Sdn Bhd for RM10.1 million cash, as the energy services provider seeks to expand its capabilities in energy efficiency solutions.

In a Bursa Malaysia filing, the group said its wholly-owned subsidiary, KJ Technical Services Sdn Bhd, 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, which will be converted into ordinary shares.

Upon completion, iHandal will become a 70.67%-owned subsidiary of KJ Technical Services and an indirect subsidiary of KJTS.

Corellia’s sole shareholder is AHAM Asset Management Bhd, while its director is Datuk Wira Johan Ariffin Rozali Wathooth.

Founded in 2009, iHandal provides engineering solutions focused on sustainable energy efficiency, including its proprietary Heatfuse™ technology that captures and repurposes waste heat.

The company serves commercial and industrial clients such as hotels, hospitals and manufacturing facilities, with operations across Southeast Asia, South Asia, Oceania and North America.

For the financial year ended June 30, 2024, iHandal posted a net loss of RM1.23 million, narrowing from RM3.19 million in FY2023, after recording a profit of RM426,000 in FY2022.

KJTS said the acquisition will complement its core cooling energy management and building support services, broadening its offerings into energy optimisation solutions.

It added that combining both businesses could create cross-selling opportunities and allow KJTS to bid for larger and more complex projects, supported by expanded engineering and implementation capabilities.

While iHandal has recorded losses in recent years, KJTS noted these were largely due to financing costs and project timing, with its core operations continuing to generate positive gross margins.

The acquisition will also give KJTS access to iHandal’s technical know-how, intellectual property and engineering team, strengthening its operational capabilities and supporting regional expansion.

The RM10.1 million purchase will be fully funded through internally generated funds and will not affect KJTS’ issued share capital or major shareholdings. Subject to conditions, the deal is expected to be completed by the second quarter of 2026.

Shares in KJTS closed up 1.5 sen or 2% at 76 sen on Thursday, valuing the group at RM524.79 million. Over the past year, the stock has fallen 27.6%.