On 11 November 2009 Merge Energy Bhd acquired Innovasi Hebat Sdn Bhd (IHSB) for RM 300, 000 to expand its business into supplying valve, valve maintenance and contractor services.
In a filing to Bursa Malaysia, its wholly-owned subsidiary Mewah Kota Sdn Bhd had entered into a sale and purchase of business agreement with IHSB’s shareholders, managing director Haji Abd Wahab Ibrahim and executive director Mohd Azrul Fitri Abu Bakar, to purchase 500,000 shares of RM 1 each representing the entire equity interest in IHSB.
The acquisition will be fully satisfied by cash. Merge Energy expects the acquisition to generate a steady recurring income and positive return. IHSB started operations in 2001 as a trading company, before diversifying its core business from just supplying valve into valve maintenance and contractor services.
Its operation unit is involved in the procurement, load-out, installation, operation and maintenance support of the waterworks industry. Its engineering services business unit is involved in valve maintenance and services and research and development.