KUALA LUMPUR: Opcom Holdings Bhd is buying a 40% stake in Unigel (UK) Ltd for US$3.67mil (RM11.65mil) cash which is involved in lubricant pumping equipment, lubricants and consumables.
It said on Wednesday the proposed acquisition would enable it to have a strategic stake in Unigel, which supplies a critical component use in producing Opcom's fibre optics cables, which is thixotropic gel.
"Opcom relies on the thixotropic gel only from Unigel due to the track record and reliability of the gel that protects the fibre in the cables and increase its durability and maintain the functionality of the fibre optics cables over its life span of approximately 25 years," it explained.
For the financial year ended Dec 31, 2013, Unigel recorded a profit after tax of 320,051 pound sterling and had net assets of 710,90 pound sterling.
Opcom also proposed a bonus issue of 32.25 million shares on a one-for-four basis to reward shareholders for their continued investment in the Opcom.
It added the bonus issue was also to enhance the marketability and trading liquidity of Opcom shares on Bursa Securities by having a larger capital base.