KUALA LUMPUR: Serba Dinamik Holdings Bhd has agreed to acquire close to a quarter the shares in Singapore listed technology firm CSE Global Ltd for RM170.6mil, as the home-grown company seeks to expand its international reach.
The move will give Serba Dinamik a stake in a profitable company with its own financial capabilities and ready order books without the requirement for further capital injection.
“The proposed acquisition is in line with Serba Dinamik’s overall strategy to enlarge our geographical footprint into countries where CSE Global has presence,” group managing director and CEO Datuk Ir. Mohd Abdul Karim Abdullah said in a statement.
CSE has a strong presence in North America, with its businesses in the US contributing 57% of the group’s total revenue. As of end of last year, CSE Global has cash balances and short-term investments amounting to S$46.9mil, or RM138.7mil.
Serba Dinamik, in a filing with Bursa Malaysia today, said it had entered into separate conditional share sale and purchase agreements to acquire the 24.84% stake in CSE Global for S$57.67mil.
The deal valued the Singapore firm at about S$0.45 a share. The stock was last traded at S$0.43, giving it a market value of S$221.9mil.
“Upon completion of the proposed acquisition, Serba Dinamik seeks to leverage on CSE Global’s client base in the oil and gas industry,” it said.
“Apart from the oil and gas sector, Serba Dinamik hopes to strengthen its information technology segment by potentially integrating CSE Global’s various IT solution platforms, which include systems automation, integration and packager,” it added.