KUALA LUMPUR: WZ Satu Bhd’s shares rose over 26% in early trade Thursday following news that chairman Tan Sri Mohamad Norza Zakaria is injecting his private vehicle into the group.

       The civil engineering group jumped 26.67%, or six sen to 28 sen at 9.03am. Year-to-date, the counter has appreciated 62.5%.

       WZ Satu is exploring the potential of taking over a 100% stake in Citaglobal Engineering Services Sdn Bhd (CESSB) from Citaglobal Sdn Bhd, the private vehicle of Mohamad Norza Zakaria.

       The indicative value of CESSB is at RM140mil. It will be settled by issuing new WZ Satu shares and new redeemable convertible preference shares (RCPS).

       WZ Satu said the acquisition of CESSB will be satisfied via 421.05 million new shares in WZ Satu at 19 sen per share or RM80mil, and 315.79 million new RCPS in WZ Satu valued at 19 sen per share or RM60mil.

       This injection, which comes with a profit guarantee, will help WZ Satu return to profitability in the financial year ending Dec 31, 2022, according to the group.

       Separately, the company will also see the emergence of a number of new shareholders, including the major shareholder of Genetec Technology Bhd Aaron Chen Kai Voon.

       This will be done via a private placement exercise at 17 sen per share.

       Chen will be subscribing 75.2 million shares worth RM12.79mil.

       The other subscribers namely Datuk Jeeventhiran Ramanaidu, Francis Sa Chee Peng and Raja Datuk Mufik Affandi Raja Khalid will subscribe about 75.2 million shares collectively, similar to the value injected by Chen.