KUALA LUMPUR: WZ Satu Bhd will be venturing into the higher-margin moneylending business, with its executive chairman and president Tan Sri Mohamad Norza Zakaria injecting his second private company into the group.

       The civil engineering and construction specialist said the diversification allowed WZ Satu to focus on the under-served and under-tapped markets as well as bring synergy effects to the group’s existing businesses - including the proposed venture into property development.

       WZ Satu has entered into a conditional share purchase agreement with TIZA Global Sdn Bhd for the proposed acquisition of Citaglobal Hospitality Sdn Bhd (CHSB) for a cash consideration of RM1.5mil.

       Upon completion of the acquisition, which is expected within the next two months, CHSB will become a wholly-owned subsidiary of WZ Satu.

       CHSB has a moneylender’s license issued by the Housing and Local Government Ministry, valid until Feb 10, 2024.

       According to WZ Satu, to date, CHSB has yet to commence its moneylending business, thereby eliminating any legacy issues upon acquisition by the group.

       The acquisition of CHSB provides a more time-saving and cost-effective way to obtain the moneylending license, as compared to WZ Satu applying for a moneylending license on its own.

       CHSB is the second asset to be acquired from TIZA Global, a private vehicle of Mohamad Norza.

       Earlier in November 2021, WZ Satu proposed to acquire the entire stake in engineering consultancy services and construction-related services firm Citaglobal Engineering Services Sdn Bhd from TIZA Global for RM140mil.

       “We plan to put the moneylending business on-stream as soon as the acquisition is completed. We see a huge growth opportunity for the group in this segment, especially with the expected hike in the overnight policy rate (OPR) in the second half of 2022.

       “The acquisition of CHSB would contribute positively to WZ Satu after considering the relatively longer processing periods and stricter lending requirements imposed by banks and licensed financial institutions,” Mohamad Norza said.

       In a separate filing with Bursa Malaysia, WZ Satu announced that a virtual extraordinary general meeting will be held on May 31 for shareholders to vote on two resolutions, pertaining to the group’s diversification into property development and its proposed change of name.