Binasat buys majority stake in solar contractor for RM18.36mil

KUALA LUMPUR: Binasat Communications Bhd is venturing into the solar energy business with the purchase of a 51% stake in Borderless Communications Sdn Bhd (BCSB) for RM18.36mil.

The company, in a filing with Bursa Malaysia today, said it will pay RM5.36mil cash, while the remaining RM13mil will be settled via the issuance of 37.14 million new shares at 35 sen each to sellers Nik Abdul Hakim Abd Razak and Mohd Solehuddin Yahya.

Nik Abdul Hakim and Solehuddin will each end up with a 5.74% stake in the enlarged Binasat group. They will also remain as a 49% shareholder of BCSB.

Binasat said the deal includes a profit guarantee of RM4.08mil.

"The Proposed Acquisition represents an opportunity for the Group to diversify its business activities into Power Utilities Business and hence an additional source of income to the Group," it said.

BCSB primarily serves the power industry, and has also implemented some transmission network utility service projects for the telecommunications industry. BCSB’s customers comprise subcontractors and/ or main contractors engaged by utility companies.

"In the next 24 months, BCSB intends to expand its utilities infrastructure services to include operations and maintenance services of solar PV facilities," Binasat said.

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